SEOUL: South Korea's Ministry of Economy and Finance announced plans to issue state bonds worth 197.6 trillion won (approximately $134.2 billion) in 2025. This marks a significant increase from the 158.4 trillion won in Treasury bonds issued in 2024, reflecting the government's strategy to manage fiscal needs and stimulate economic growth.
According to Yonhap News Agency, the Ministry of Economy and Finance has laid out a detailed plan for the bond issuance, which will be strategically spread throughout the year. The ministry aims to balance government expenditure requirements while adhering to a policy of equal monthly allocation. In line with this approach, approximately 55-60 percent of the bonds are expected to be issued in the first half of the year, with 27-30 percent distributed in the first quarter alone.
The South Korean government is also taking steps to strengthen its bond market in anticipation of the country's inclusion in the World Government Bond Index (WGBI), managed by FTSE Russell, in November 2025. This inclusion is projected to attract up to 80 trillion won in fresh investments to the local bond market, supporting the government's efforts to enhance market robustness and investor confidence.