Comparative Study Of Smes For China And Korea Bond Financing

SMEs is an important foundation for the world economy, it is the economic life of the most active unit, it is an important factor in social stability and prosperity. However, the important role of SMEs and their access to financial resources is not proportional. Provide financial services to SMEs is lagging behind, lack of financial support, financing channels, narrow, small and medium widespread shortage of funds, has greatly restricted the rapid development of SMEs. Bond market is an important part of the capital market, is an important channel for direct financing. However, due to various reasons, our large number of outstanding SMEs financing couldn’t pass the bond market.Since the1950s, South Korean small and medium enterprises has grown rapidly and the reputation of South Korean economic has improved. This is mainly due to the efforts of South Korean government for half a century for growing recognition of the importance of SMEs. The government passed legislation to establish a series of guidelines designed to promote SMEs development policy, especially a distinctive sound of its established policy of the financial system for SMEs. South Korean small and medium enterprises development, South Korean bond financing for SMEs in the legal, policy, practice and market measures can learn from China.This paper adopted comparative analysis of methods from the policies, regulations and market three dimensions of the financing situation of SMEs in China and Korea. Laws and policies focused on comparative studies between China and Korea SMEs debt financing, the main contents are laws and policies systems, the other contents are the introduction of the background, purpose, etc. The issue is market comparison of small and medium enterprises between China and South Korea, focused on the main issue of the bond market, investors and bond forms. Policies and regulations belong to higher level of structure, market areas belongs to economic base. In this paper, the policies, regulations, and three dimensions of market bond financing for SMEs in China and South Korea conducted more comprehensive study from the laws, policies and the market three aspects proposed bond financing for SMEs in China and South Korea compared to China’s revelation. The conclusion is that; South Korean success experience in bond financing for SMEs in China SMEs debt financing can provide a reference to the Chinese system of bond financing for SMEs that contribute to the development.