South Korea is attempting to rein in balance sheets of state-owned enterprises in an effort expected to keep new issuance from the segment below the US$7bn-$8bn recorded in the past two years. The government is preparing to implement measures, such as changes to existing SOE laws, to require 18 of South Korea's most debt-laden public companies to obtain official approvals before issuing foreign or domestic bonds, according to a finance ministry official. Authorities are expected to consider, among other things, a prospective borrower's existing leverage before approving access to the bond markets. Plans to amend corporate laws will be submitted to parliament during the second half of the year, according to sources.
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