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Finance

South Korea asks some state-owned companies to cut bond issuance

Finance Ministry to slash sovereign issuance by 60% amid debt market tightness

Finance Minister Choo Kyung-ho, second from left, and Bank of Korea Gov. Rhee Chang-yong (second from right) and other officials are seen ahead of an emergency meeting on Nov. 28 in Seoul.    © EPA/Jiji

SEOUL -- The South Korean government said Monday it has asked state-run companies with high credit ratings such as Korea Electric Power and Korea Gas to reduce their bond issuance, amid criticism they are absorbing too much money in the corporate debt market. 

The Finance Ministry announcement comes as the country's private companies and financial firms have struggled to raise money in the bond market over the last few months and as financial authorities move to help them raise more funds.

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