S. Korean bond issues grow 5.6 pct in 2008

SEOUL, Jan. 8 (Yonhap) -- South Korea's bond issuance increased 5.6 percent in
2008 from a year earlier amid growing concern over an economic downturn, the
stock market operator said Thursday.
The government and companies sold 406.2 trillion won (US$306 billion) worth of
bonds last year, up 21.6 trillion won from the previous year, the Korea Exchange
(KRX) said. State bonds accounted for 62.8 trillion won of the total.
Trading volume also increased due to falling interest rates and expanded foreign
investment, the KRX said. A total of 1,784.6 trillion won worth of bonds changed
hands last year, up 15.1 percent from a year earlier, it said.
"Massive foreign trading and falling borrowing rates in line with a reduced
policy rate helped boost the annual trading volume," the KRX said in a statement.

The Bank of Korea slashed the key rate in the October-December period to a record
low of 3 percent in four rounds of aggressive reduction to prevent the economy
from a U.S.-triggered financial turmoil.
As of the end of 2008, the benchmark yield on three-year government bonds stood
at 3.41 percent, down 2.33 percentage points from a year earlier, and the return
on five-year Treasuries fell 2.01 percentage points to 3.77 percent, the bourse
operator said.
pbr@yna.co.kr
(END)