An Arirang bond is a won

South Korean won

The won is the currency of South Korea. A single won is divided into 100 jeon, the monetary subunit. The jeon is no longer used for everyday transactions, and appears only in foreign exchange rates...

-denominated bond

Bond (finance)

In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...

 issued by a foreign entity in South Korea

South Korea

The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...

. The name refers to Arirang

Arirang

"Arirang" is a Korean folk song, sometimes considered the unofficial national anthem of Korea. Arirang is an ancient native Korean word with no direct modern meaning.- Variations :...

, a Korean folk song. The market for Arirang bonds is extremely small, constituting less than 0.2% of corporate bond issuance in South Korea. The Asian Development Bank

Asian Development Bank

The Asian Development Bank is a regional development bank established on 22 August 1966 to facilitate economic development of countries in Asia...

was the first to issue Arirang bonds, with a 1995 issue of ₩80 billion worth of 7-year bonds.