Hanjin Heavy Industries & Construction is to issue KRW 120bn (about $103m) of corporate bond.

Although labor union-management conflict in Youngdo yard was lately settled and new order sales started off, interest rate turns out to be 6%, higher than expected.

Bond market said that the South Korean shipbuilder would issue three-year corporate bond on 19 January.

MERITZ Securities, Korea Investment & Securities, Woori Investment & Securities and Korea Development Bank would take over KRW 20bn each, while Daewoo Securities, Shinhan Investment Corp and Hyundai Securities are to buy KRW 10bn.

Issuing interest rate was fixed at 6.10%, higher than 5.95% from Hanjin's KRW 150bn of corporate bond issued in November 2011. KRW 4trn of debt and another bond issuance after a short period, etc., seemed to have caused increase in interest rate.