ABSTRACT
The first issue of a Korean bond following the establishment of the Republic of Korea in 1948 was the government's Country Foundation Bond of 1949. The bond raised funds that were used to establish the new national government. The key participants in Korea's bond market are the issuers, underwriters, financial intermediaries, and buyers. The paying agents for bonds are generally banks and securities companies, and the Bank of Korea serves as fiscal agent for all issues of national government bonds. The three main entities involved in Korea's underwriting process are the management group, the underwriting syndicate, and the subscription agent. Korea's securities companies, which are licensed by the Ministry of Finance and Economy (MFE), are the major financial intermediaries in the bond market. New issues of bonds are regulated by such laws as the Commercial Code, Securities and Exchange Law, and the Regulations on Securities Underwriting Business among others.
