Korea Will Allow Foreigners to Buy Korean Bonds

Washington, DC, May 30, 1997 - The Korean government has announced that it will begin to open the Korean bond market to foreign investors. Effective June 2, 1997, foreigners will be permitted to purchase Korean Stock Exchange listed, nonguaranteed convertible bonds issued by large Korean listed enterprises. Total foreign purchases of these convertible bonds cannot exceed 30% of each issue, and an individual foreign investor can hold no more than 6%. Foreigners also will be permitted to purchase nonguaranteed listed bonds, with maturities of three years or more, issued by small and medium-sized Korean companies. The total foreign ownership limit for each issue of these bonds will be 50%; there will be no individual limit.