South Korea And GDP Indexed Bonds

Group Members:

Economy Profile
Worlds 8th largest exporter: Ahead of the UK, Russia and Canada. Worlds largest shipbuilder: including worlds largest shipyard run by

Hyundai Heavy Industries.

Worlds 5th largest automobile manufacturer: including worlds largest

automobile assembly plant (Hyundai Motors).

Worlds largest manufacturer of screen displays (LCD, CRT, Plasma,

etc).

Economy Profile contd

Worlds fastest increase in patents registered. World's largest electronics manufacturing firm: Samsung Electronics. Worlds second largest steel maker: POSCO Worlds largest producer of computer memory chips.

Balance of Trade
South Korea relies largely upon exports to fuel the

growth of its economy. The most important exports are finished products such as electronics, semiconductors, LCD panel, mobile phone, computers related, television, motor vehicle, steel, ships and petrochemicals. South Korea imports machinery, oil, steel, transport equipment, organic chemicals and plastics.

Currency and exchange rate

South Korean Won is the currency

Types of Bonds

Based on issuer

Based on Tenure

Investors

Coupon Rates
2-year MSB issued in April 2011 at a 3.83%
5-year KTB issued in March 2011 with a coupon rate of

4.0%.
10-year inflation-linked bond sold in June 2011 with a

coupon rate of 1.5%

Effect of GDP linked bonds If issued 10 years back

Is GDP linked bond required now?

Debt to GDP

THANK YOU