우리나라 지방채 자율화 및 지방채시장 활성화 연구

This article tries to find necessary conditions for market development of local bond in Korea. The author argues that diversification of revenue source in local governments are beneficial institutional condition for Korean local governments. Development of local bond market needs central government’s plans and institutional design. Local bond market is underdeveloped because of stringent administrative process and institutional restraint to curb issuance of local bonds. Also bond exchange market does not support advanced credit rating service to local government. Behind this surrounding, this paper examines both macro-level market conditions for local bond and micro-level management techniques for Korean local governments. Macro-level conditions include flexible numerical limits for local bonds, incentives for issuance of local bonds, division of local bonds in accordance with the purposes (investment and consumption), increase of quantity of bond of local government-owned enterprises, market-friendly issuance policies. Micro-level conditions include managing transaction risk, incentives for local public officials, transparency of transaction information and credit rating etc. Incremental institutional reform is advised.