67 Trillion Won in Public Bonds to Be Issued in Q3, Up 4 Trillion Won from Initial Plan

Increase from Initial Plans Due to Rising Policy Demand
But Down 3 Trillion Won Compared to Previous Quarter

The government will maintain the volume of major public bonds—excluding Treasury bonds—at around 67 trillion won in the third quarter of this year, aiming to stabilize the bond market. As domestic and international market uncertainties persist, the government plans to flexibly respond by spreading out issuance schedules and maturities and issuing foreign currency bonds if necessary.

Yonhap News Agency

The Ministry of Economy and Finance held the third meeting of the "Bond Issuing Agencies Council" on July 24, presided over by Director Hwang Soon-kwan of the Treasury Bureau, with representatives attending from the Financial Services Commission, Financial Supervisory Service, and major government-guaranteed bond and public bond issuing agencies.

According to the results of the meeting, major public bond (excluding Treasury bonds) issuance for the third quarter is expected to reach 67 trillion won—an increase of 4 trillion won from the initial plan (based on seven agencies). Although this reflects increased policy demand, it is still 3 trillion won less than the issuance volume in the previous second quarter.

A review of first-half results shows that Treasury bond issuance reached 124.1 trillion won (55.5%), corresponding to the lower end of the year’s guideline (55–60%). The government and issuing agencies had originally agreed at the second meeting in April to normalize second-quarter issuance volume, but issuance conditions deteriorated in May and June more than expected, resulting in a slight reduction in the overall issuance volume. However, for major public bonds excluding Treasury bonds, 70 trillion won was issued in the second quarter, a 6 trillion won increase over the initial annual plan.

The government and participating agencies noted that, while interest rates remained high until recently, bond demand has somewhat recovered since July and issuance conditions are gradually improving. Accordingly, the plan for the third quarter is to proceed with scheduled issuances of Treasury bonds and major public bonds as planned.

In particular, to ease supply and demand pressures on the market, they agreed to actively stagger issuance schedules and maturities. If a sharp increase in issuance is anticipated, the Bond Issuing Agencies Council will frequently adjust issuance volumes and timings, and, if necessary, will respond flexibly through foreign currency bond issuances or direct borrowing.

Director Hwang assessed, "Given that uncertainties affecting the bond market remain in the second half of the year, institutional cooperation for market stability is crucial." He stressed, "We will coordinate and adjust issuance volumes and timings through ad hoc meetings as necessary." The government and issuing agencies will continue to monitor market conditions throughout the third quarter and respond jointly as needed.

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