South Korean theme park developer's bond default points to more pressure

credit analyst Cho Dou-hyung said BNPQY) Asset Management. “It looks like credit markets are getting enough policy support for now, but unless the Fed and Bank of Korea give some kind of assurance that policy tightening could slow, those jitters are unlikely to go away.”

The Gangwon Development Corporation’s default on its debt has sparked lending problems for hundreds of thousands of other projects in Asia’s fourth-largest economy, even drawing parallels to China’s real estate debt crisis. It also came as a shock to some investors, as the case showed that even state-backed developers were faced with Default risk of soaring interest rates. The company is % is owned by Gangwon-do, and its Asset-Backed Commercial Paper (ABCP) is A1 grade and guaranteed by the local government. “Right now, people don’t have enough confidence that these kinds of bad loans won’t happen again while interest rates are still going up,” Cho said. Legoland, a park resort on Chuncheon Island, has rides and 40 – Room hotel, said Thursday it will be closed for three months starting in January 100 “For maintenance.”