The issuance of major public bonds in the third quarter is expected to reach 6.7 trillion won, an increase of 4 trillion won from previous plans.
On July 24, the Ministry of Finance held its third meeting of the 'Bond Issuance Agency Council' chaired by Hwang Soon-kwan, head of the National Treasury. Representatives from the Financial Services Commission, the Financial Supervisory Service, and key government-backed bond issuing agencies attended the meeting to review second-quarter performance and discuss plans for the third quarter.
Earlier, the government and issuing agencies had agreed in April to normalize the issuance volume for the second quarter. However, a review revealed that the issuance conditions in May and June were worse than expected, leading to a reduction in the issuance volume. In the first half of the year, 124.1 trillion won in government bonds were issued, while public bonds excluding government bonds totaled 70 trillion won in the second quarter. Overall, the first half's issuance was 1 trillion won lower than the initial plan.
For the third quarter, the issuance of major public bonds, excluding government bonds, is projected to be around 67 trillion won, reflecting an increase of 4 trillion won due to rising policy demand. However, this represents a decrease of 3 trillion won compared to the previous quarter.
Attendees noted that while interest rates remain high, bond demand has shown some signs of recovery this month.
The government and issuing agencies plan to proceed with the scheduled issuance of government bonds and major public bonds in the third quarter as planned.
Participating agencies will flexibly adjust bond issuance. They will diversify issuance schedules and maturities, and if necessary, issue foreign currency bonds or conduct direct borrowing. Additionally, if a significant increase in issuance is anticipated, they plan to consult with the Bond Issuance Agency Council to adjust the volume and timing of issuance.
Hwang emphasized, "Given the ongoing domestic and international uncertainties surrounding the bond market in the second half of the year, cooperation among institutions is crucial for market stability. We will hold meetings as needed to discuss issuance volumes and timing."
* This article has been translated by AI.
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