Lee & Ko Advises on the Launch of QIB Bond Program for Mid-Sized Companies Led by KDB and KODIT

Lee & Ko acted as legal advisor in connection with the launch of a Qualified Institutional Buyer (QIB) bond program for mid-sized Korean companies, led by the Korea Development Bank (KDB) and the Korea Credit Guarantee Fund (KODIT).

The QIB bond is a quasi-public offering structure that allows bonds to be issued and traded exclusively among institutional investors with a certain level of risk management capability. While offering reduced disclosure requirements compared to public offerings and fewer transfer restrictions than private placements, the regime—introduced in 2012—had seen no actual issuances until now. The launch of this new QIB bond program is expected to serve as a stepping stone for mid-sized enterprises to access the bond market, providing them with much-needed financing to support growth and enhance competitiveness.

Lee & Ko played a key role in drafting the bond underwriting agreement used in the program, as well as reviewing and preparing various other key documents, including KODIT’s bond guarantee agreement. As the first implementation of its kind, the program raised various legal and structural issues. Drawing on its deep expertise in Korea’s capital markets, Lee & Ko provided timely and accurate advice to all stakeholders—including KDB, KODIT, underwriters, and credit rating agencies—contributing meaningfully to the successful launch of the program.