Korea lights the way

Cover story

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Developments in Australia and Japan in the past decade have represented something of a setback for the Asia-Pacific inflation market (see box). But that may be set to change, with the Korean government launching its inaugural issuance of inflation-linked bonds - or linkers - on March 23. The move represents a clear statement to the market that the government is determined to closely supervise inflation levels. And the issuance may allow dealers to offer hedges using inflation derivatives to