Junk Bond Funds in Korea May Have Just Gotten a $2 Billion Boost
- Steps effectively lessen tax burden for some junk investors
- High-yield Korea bonds have seen demand from retail investors
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South Korea has come up with a novel way of ensuring that weaker companies get cash during economic slumps: it’s offering tax incentives to investors in high-yield debt funds.
The Financial Services Commission announced measures Tuesday that effectively could help wealthy retail investors in such funds reduce their tax burden. The regulator said that income from such funds won’t be added to a person’s total income when calculating taxes, up to a limit.