Korea signals deeper bond issuance cuts

The finance minister on Friday said 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 Korea decided to reduce Treasury bond issuance by 5 trillion won ($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.

Yonhap