South Korea's finance minister says further Treasury bond issuance cuts possible if needed
Quick Look
South Korea's Finance Minister Lee Hyoung-il said the government will consider further reducing Treasury bond issuance if necessary and will continue monitoring the market closely, following a decision to cut issuance by 5 trillion won in October and implement stabilization measures including emergency bond buybacks if needed.
AI-generated summary
Why It Matters
South Korea recently reduced Treasury bond issuance by 5 trillion won for October and pledged stabilization measures including emergency bond buybacks if needed. The finance minister held a meeting with key financial regulators to discuss market conditions.
By Kang Yoon-seung
SEOUL, Oct. 2 (Yonhap) -- The finance minister on Friday said South Korea will consider further reducing Treasury bond issuance if necessary, pledging to continue closely monitoring the market.
Finance Minister Lee Hyoung-il's remark came after South Korea decided to reduce Treasury bond issuance by 5 trillion won (US$3.64 billion) in October, with the government also pledging to implement stabilization measures, including emergency bond buybacks, if needed.
Lee discussed the issue during a meeting with Bank of Korea Gov. Shin Hyun-song, Financial Services Commission Chairman Lee Eog-weon, Financial Supervisory Service Gov. Lee Chan-jin and Land Minister Hong Jee-sun.
It marked the first meeting of its kind since Lee took office last month.
"If high interest rates persist, businesses with lower credit ratings could face greater refinancing burdens. The government will continue to closely monitor the bond market in cooperation with relevant agencies," Lee said.
During the meeting, Lee also stressed the need to closely monitor the property market, noting that growth in Seoul apartment prices has slowed for five consecutive weeks, while housing prices outside the affluent Gangnam area continue to rise.
Lee also stressed the need to continue implementing follow-up measures for the internationalization of the Korean won, pledging to announce steps to ease related regulations soon.
What to Watch
AI outlook โ possibilities, not facts
The government will announce steps to ease regulations for Korean won internationalization soon
Likely ยท Within weeks
Emergency bond buybacks will be implemented if market conditions worsen
Possible ยท Within months
Open Questions
- What specific threshold would trigger further bond issuance reductions?
- What exact steps will be taken to ease regulations for Korean won internationalization?
- How long will the current monitoring cooperation between agencies last?
