Gov t desperate to cool overheating real estate market koreatimes.co.kr - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from koreatimes.co.kr Daily Mail and Mail on Sunday newspapers.
Korea to issue FX bonds buoyed by solid ratings outlooks
Posted : 2021-07-25 16:32
Korea relatively insulated from worldwide sovereign credit downgrades
By Lee Kyung-min
The Ministry of Economy and Finance plans to issue $1.5 billion (1.7 trillion won) worth of foreign exchange stabilization bonds (forex bonds) in the U.S. and Europe on the back of foreign investors high assessment of the country s economy, as evidenced by stable sovereign credit ratings and outlook from three global rating agencies.
This is the latest effort to draw greater foreign investment via issuing dollar- and euro-denominated bonds at lower-than-expected yields, which translates into decreased overseas borrowing costs for local state-run and private firms.
S Korea s MBS issuance logs double-digit fall in H1 - World News sina.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from sina.com Daily Mail and Mail on Sunday newspapers.
2021-04-13 03:05:20 GMT2021-04-13 11:05:20(Beijing Time) Xinhua English
SEOUL, April 13 (Xinhua) South Korea s issuance of mortgage-backed securities (MBS) almost halved in the first quarter owing to weaker demand for the government-offered fixed-rate home-backed loan, financial watchdog data showed Tuesday.
The sale of MBS, issued by the state-run Korea Housing Finance Corp. to securitize mortgage loans, amounted to 9.1 trillion won (8.1 billion U.S. dollars) in the January-March quarter, down 49.4 percent from a year earlier, according to Financial Supervisory Service (FSS).
It came as demand weakened for the fixed-rate mortgage loan, provided by the government. The record-low policy rate increased demand for the floating-rate home-backed loan.
By Lee Kyung-min
Home prices in Korea are unlikely to decline any time soon, due to the combination of cheap borrowing costs and panic-driven buying, sustained by the abject failure of the government s 24 rounds of botched real estate policies that ignored the realities of supply and demand.
According to November data from the Citizens Coalition for Economic Justice (CCEJ), a left-leaning civic group, prices of apartments in Seoul climbed 58 percent over the past three years. This is a further increase from its July assessment where it said the jump in the period was 314 million won, or 52 percent, more than double the 134 million won during the term of President Park Geun-hye between 2013 and 2017.