Korean Markets Ride Out Crisis as Global Debt Funds Keep Buying
- Swift response to calm markets won praise from investors
- South Korea took measures to revamp market infrastructure
South Korea was spared a financial maelstrom even as it battles a political crisis, underscoring the extent to which its markets have matured, bolstered by swift efforts to reassure investors.
Global funds were net buyers of government bonds in December, and the cost to insure Korea’s debt against default hit only a four-month high. This suggests investors maintained confidence in the country despite President Yoon Suk Yeol’s Dec. 3 bid to impose martial law — a shocking move that threatened its democratic foundations and led to his impeachment by lawmakers.