MoEF "Favorable Conditions for Bond Issuance in Second Half... Immediate Response to Increased Volatility"

Hong Nam-ki, Deputy Prime Minister for Economy and Minister of Economy and Finance, is delivering opening remarks at the 4th Emergency Economic Central Countermeasures Headquarters meeting held at the Government Seoul Office in Jongno-gu, Seoul on the 20th. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Jang Sehee] On the 12th, the Ministry of Economy and Finance stated, "Considering the recent global ultra-low interest rate trend due to safe asset preference and the solid demand base for our government bonds, the issuance conditions for government bonds are expected to remain favorable in the second half of the year."

Yang Chung-mo, Director General of Fiscal Management at the Ministry of Economy and Finance, made these remarks at a government bond market review meeting held at the Export-Import Bank in Yeongdeungpo-gu, Seoul. The meeting was organized to assess the market impact of the recent increase in government bond issuance and to gather opinions on future policy directions.

According to the Ministry of Economy and Finance, the government bond issuance ceiling has increased from KRW 101.7 trillion last year to KRW 167.8 trillion based on the third supplementary budget (supplementary budget) this year.

Director Yang evaluated, "Despite the increased government bond issuance volume, government bonds have been issued stably so far, supported by policy assistance and a significant expansion of foreign investors' bond investments." In particular, the net investment by foreign investors in bonds recorded KRW 19.4 trillion from January to May this year, compared to KRW 9.9 trillion for the entire last year.

He explained, "However, we will closely monitor the possibility that the supply-demand burden caused by the increased issuance volume may cause instability in the government bond market, and will respond immediately through active market stabilization measures in case of market volatility expansion such as a sharp rise in interest rates."

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