Government to Issue Supplementary Budget Deficit Bonds with Equal Distribution Over Time

[Sejong=Asia Economy Reporter Kim Hyunjung] The government has decided to proceed with the supplementary budget worth 14 trillion won funded by deficit bonds, and plans to issue the additional bonds in phases according to timing.

The Ministry of Economy and Finance announced that Second Vice Minister Ando Geol chaired the Fiscal Management Strategy Committee on the 18th at the Osong Advanced Medical Industry Promotion Foundation and discussed these matters. Vice Minister An said, "When raising funds for this supplementary budget, the additional issuance of treasury bonds will be evenly distributed by timing as much as possible to minimize the impact on the bond market," adding, "We will prioritize utilizing the previous year's carryover funds to stably secure the supplementary budget funds."

In the bond market, four core tasks will be promoted to mitigate market volatility. On the supply side, a bond issuance model reflecting fiscal conditions will be established to present an optimal issuance portfolio by maturity, and on the demand side, a plan for treasury bonds for individual investors currently pending in the National Assembly will be pursued, along with measures to revitalize inflation-linked bonds.

To reduce market volatility, a new 30-year ultra-long-term futures contract will also be introduced. Additionally, a bond management system equipped with an integrated bond database, issuance simulation, and an early warning system related to volatility will be established within this year.

The government plans to invest 665.1 trillion won this year to support the economy. The government budget will inject a record-high 607.7 trillion won, and public institution investments will also reach a record level of 67 trillion won. Private investment projects will increase the scale of investment execution from 3.5 trillion won last year to over 4.5 trillion won this year.

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