The Ministry of Finance and Economy said Thursday it held the fourth meeting of its “WGBI standing monitoring and investment promotion task force” on Tuesday at the Government Complex Seoul. Related agencies reviewed capital-flow trends before and after the index inclusion.
From the start of WGBI inclusion through Monday, foreigners’ net purchases of Korean Treasury bonds totaled 8.5 trillion won on a trade basis and 6.4 trillion won on a settlement basis, the ministry said. Inflows from Japan were somewhat limited, but funds from existing investors have continued to come in.
The ministry said smoother foreign inflows since the April start of WGBI inclusion have contributed to market stability, including declines in Korean Treasury yields. With larger inflows expected next month, it said, authorities should prepare carefully.
Hwang Sun-gwan, director general for government bonds, said, “With uncertainty from the war in the Middle East and risks from major countries’ monetary policies still present, we must thoroughly manage external risks and concentrate all capabilities so there is no disruption to foreign inflows.”
He added that major large investors he met during last week’s investor relations meetings in Japan “fully trust” the government’s commitment to capital-market advancement. He said the task force’s role is to identify foreign investors’ difficulties and resolve them jointly to make Korea a more attractive place to invest.
The government said it shared with relevant agencies the concerns raised during the Japan meetings and agreed to discuss improvement measures together.
The ministry said it will continue to regularly monitor foreign inflows through the task force and maintain investor outreach to communicate with investors and address issues proactively.
* This article has been translated by AI.
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