48 Trillion Won in Treasury Bonds Maturing This Year... Expanding Fiscal Policy to Increase to 60 Trillion Won Next Year

[Asia Economy Reporter Kwangho Lee] The amount of government bonds maturing this year is reported to reach 48 trillion won. Next year, it is expected to increase to the 60 trillion won range, requiring careful management.

According to data received from the Ministry of Economy and Finance by Rep. Choo Kyung-ho of the People Power Party, a member of the National Assembly's Planning and Finance Committee, the outstanding amount of government bonds maturing this year is 48.193 trillion won.

This figure includes 3-year, 5-year, 10-year, 20-year, 30-year, 50-year, and inflation-linked government bonds combined. Due to monthly fluctuations caused by issuance, exchange, and buyback (early redemption) of government bonds, the data was compiled as of the end of November 2020.

Even considering that the amount maturing will decrease due to exchanges and buybacks this year, the scale remains significant.

The problem is that the amount maturing will increase further next year and the year after. The amount of government bonds maturing in 2022 is 61.2405 trillion won, the highest ever, and it is expected to increase further to 67.7614 trillion won in 2023.

The increase in maturing amounts in the next two years is due to the expansionary fiscal policy and increased issuance of government bonds in response to the COVID-19 pandemic.

While increasing government bond issuance to boost fiscal spending during the crisis was inevitable, concerns have been raised. The market burden could grow, and exchanges might be used for "rolling over" to spread maturities. There are also concerns about the limits of using fiscal funds for buybacks.

A Ministry of Economy and Finance official said, "Since a large amount of government bonds have been issued, the amount maturing in the future could always be at record highs," adding, "The issuance volume was determined by considering both the necessary parts for fiscal policy execution and the amount of maturing bonds."

This content was produced with the assistance of AI translation services.