SEOUL, Jan 9 Reuters South Korea39;s credit market is showing signs of stability less than two weeks after officials pledged to expand a 66 billion program if needed to limit the fallout from a builder39;s debt woes, analysts said, but added that it was still early days.

An announcement by Taeyoung Engineering Construction, the country39;s 16th largest builder, on Dec. 28 to reschedule its debt has fuelled concerns about a credit crunch in money markets, as many real estate projects rely on the shortterm debt market to finance construction projects.

On Tuesday, the yield on 91day commercial paper was quoted at 4.24, down from a 10month high of 4.31 in early December.

It compares with a 14year high of 5.54 in late 2022, when a missed bond payment by a local governmentbacked developer of theme park Legoland caused a credit crunch in financial markets.

We cautiously do not see systematic risks from the event as we believe the government and authorities are likely to recycle policy tools from 4Q22, if necessary, Citi economists Jiuk Choi and Jinwook Kim said in a report.

Market impact has been limited as financial authorities are proactively announcing policy support and expanding when needed, said Choi Seongjong, a credit market analyst at NH Investment Securities.

Authorities have been quick to limit any spillover from Taeyoung39;s debt troubles, and have urged the builder to fulfil creditors39; demand to inject more liquidity into the company by selling its…