<Anchor>
The bond market is freezing in the aftermath of Gangwon-do's promise to guarantee money borrowed from Legoland during the construction process.
This is because there are concerns among investors that the local government will not be able to provide guarantees, so other companies will also suffer.
By Kim Jung-woo, staff reporter.
<Reporter>
As the Legoland incident showed signs of running out of corporate money, the authorities began to evolve.
It announced that it would invest 1.6 trillion won to buy corporate bonds.
Companies were already struggling to borrow money from investors by issuing corporate bonds, but they had to pay more interest than the rising base rate.
However, if the local government, Gangwon-do, said that they would not be able to repay the money, there was even a feeling of anxiety that general companies would be terrified.
The bond yield gap widened to the highest level since the financial crisis on fears that the money could be wasted after investing.
That's how hard it is to borrow money.
[Sewoon Hwang/Senior Research Fellow, Capital Market Research Institute: It can be evaluated that the normal market function of the means of financing is undermined to a large extent because it has shown that even a case with a guarantee by a local government can be sufficiently collapsed.] Money
flow is clogged and the real estate market As silver is frozen, red flags are on from construction companies that have invested in development projects and financial companies that have invested in them.
[Construction company official: There was a certain atmosphere like this in 2010, but when the sale market was not good.
The market is not good, and there is no sale.
'Can a construction company invest in corporate bonds like this?'
Because of this kind of atmosphere.]
In this month of anxiety, a number of companies are struggling because their bonds are not selling despite their good credit ratings.