Kimchi Bonds Return in Korea as Weak Won Sparks Forex Demand

A leading South Korean credit card company is selling a dollar bond in the local market, highlighting demand to diversify away from the won after recent declines.

Hyundai Card Co. said on Monday it is issuing $20 million of so-called Kimchi bonds. This is the first such public offering from a domestic firm since June when the Bank of Korea lifted a 14-year-old ban on local institutions investing in foreign-currency notes for domestic use to improve FX liquidity.