With tensions easing on the Korean Peninsula due to the prospect of dialogue between the two Koreas, and Pyongyang and Washington, South Korea's credit default risk has witnessed a 17-month low.
According to financial information providers Markit and Yonhap Infomax on Wednesday, the credit default swap(CDS) premium for South Korean foreign exchange stabilization bonds with a five-year maturity reached 41-point-68 basis points on Monday. That’s down nearly six percent from the previous session. 

The figure was the lowest to be posted since October 26th, 2016 and resulted after decreases for five consecutive trading days.

A CDS is a type of insurance against default on debt by a state or company. A low CDS premium signifies a low probability of default.