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SEOUL, Aug 1 Asia Pulse - The government will introduce on Aug. 10 non-taxable high-yield bond investment funds with the aim of boosting the junk bond market, the Ministry of Finance and Economy (MOFE) said Wednesday.
The MOFE said that it will brief the cabinet Aug. 7 about the enforcement regulations of the new bond investment fund law passed by the National Assembly in July for introduction around Aug. 10.
Investment trust firms, banks and mutual funds have been promoting products to attract investors to the new funds over the past months while the government was preparing to introduce the law which exempts investment funds that have over 30 per cent of their assets in high-yield bonds from the 16.5 per cent capital-gains tax.
The per-capita maximum investment applicable to the tax exemption is 30 million won (US$23,370), and only those who invest in high-yield bond funds for over one year until the end of 2002 are ...
Source: HighBeam Research, KOREA TO INTRODUCT TAX-FREE HIGH-YIELD BOND INVESTMENT FUNDS.