| Hanja: | none; 김치債券 |
| Hangul: | 김치본드; 김치채권 (rare) |
| Rr: | Gimchi Bondeu; Gimchi Chaegwon |
| Mr: | Kimch'i Pondŭ; Kimch'i Ch'aekwŏn |
A Kimchi bond is a non-won-denominated financial bond issued in the South Korean market. The name refers to kimchi, a Korean side dish.[1] Woori Bank, which is credited with coining the term, defines it as solely referring to bonds from foreign issuers, a definition echoed by the Ministry of Finance and Economy.[2] [3] However, in practice, the term is also used to refer to non-won-denominated bond issuance by domestic entities.[4] [5] Deutsche Bank credits itself as having executed the first kimchi bond transaction, a US$100 million two-year floating rate note sold by South Korean company SK Global, but the first foreign company to sell non-won-denominated bonds in the South Korean market was Bear Stearns.[2] [4] Although foreign firms had long been permitted to issue won-denominated bonds, typically referred to as Arirang bonds, permission for them to issue foreign currency-denominated bonds was slower in coming. Permission was finally granted due to the strength of the won in 2005.[3] [6]