South Korea has been working on floating 10-year foreign exchange stabilization bonds worth up to $1 billion, the finance ministry here said Thursday.

The Ministry of Strategy and Finance said it has made a deal announcement in the United States on Wednesday (US time) to issue the bonds as part of its efforts to stabilize the market.

"Detailed rates and amount will be decided later in accordance with the market situations," said the ministry in a release.

The ministry said it picked seven companies including the Korea Development Bank and Goldman Sachs as lead managers.

A foreign exchange stabilization bond is a type of foreign currency-denominated bond for promoting FX market stability.

The bond issue reflects the South Korean economy's improved creditworthiness. In terms of sovereign ratings, South Korea is graded as AA or Aa2, the third highest marks given by Standard & Poor's and Moody's, respectively. (Yonhap)