S. Korea's bond issuance drops in April on US tapering

Bond issuance in South Korea decreased in April from the previous month due to concerns about the US-led tapering, industry data showed Tuesday.

The value of bonds sold in Asia's fourth-largest economy came to 69.8 trillion won ($54.6 billion) in April, down 900 billion won from a month ago, according to the data from the Korea Financial Investment Association.

The KOFIA attributed the issuance fall to the US Federal Reserve's hawkish signal to raise the policy interest rates to rein in the high-flying price pressure.

In early May, the Fed raised its benchmark interest rate by a half-percentage point and indicated more rate hikes throughout the year. (Yonhap)