[2026 Parliamentary Audit] Shin Hyunsong: "Some Government Bond Issuance Also Desirable for Capital Market Development"

Should help lay the foundation for the capital market while maintaining sustainability.

Bank of Korea Governor Shin Hyun-song said that issuing a certain amount of government bonds would be desirable for the development of the capital market as well.

Bank of Korea Governor Shin Hyun-song answers questions from lawmakers during the National Assembly’s Finance and Economy Planning Committee’s audit of the Bank of Korea, held at the BOK in Jung-gu, Seoul, on the 12th. Bank of Korea

Governor Shin made the remarks on October 12 in response to a question from Democratic Party of Korea lawmaker Oh Ki-hyung about the appropriate size of government bond holdings under the current circumstances. The question was raised during a parliamentary audit of the Bank of Korea by the National Assembly’s Finance and Economy Planning Committee at the Bank of Korea in Jung-gu, Seoul.

“Fiscal considerations are certainly a factor, but I believe that issuing government bonds at a certain level is also desirable for the development of the capital market,” Shin said. “If we can maintain sustainability while helping establish the foundation of the capital market, the current level is entirely acceptable.”

Asked about the claim that the government should repay more of its debt in light of economic fundamentals, he said, “Looking at market price movements over the past two weeks, government bond yields stabilized considerably after the announcement that issuance would be reduced, and remained at a relatively low level compared with those of major economies.” He said he believed that the market had reached a point where it could have confidence. He added, “It is desirable to determine the amount of additional issuance on a case-by-case basis, depending on market conditions.”

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