S. Korea to sell 167.8 tln won in state bonds next year

SEOUL– South Korea plans to sell state bonds worth 167.8 trillion won (US$131.5 billion) next year, the finance ministry said Monday.

The planned debt sale marks a drop of 800 billion won from this year, when Treasurys worth 168.6 trillion won were sold, according to the Ministry of Economy and Finance.

The government plans to sell a net 61.5 trillion won in state bonds next year, compared with a net 104.8 trillion won planned this year, the ministry said. It plans to refinance Treasurys worth 106.3 trillion won in 2023, compared with 72.6 trillion won planned this year.

For the first quarter, the government plans to sell bonds worth around 42 trillion won to 48 trillion won, compared with 53.3 trillion won posted in the January-March period this year.

“In 2023, the global monetary tightening may enter the final phase following the slowed inflation and growing concerns over a recession,” the finance ministry said in a statement.

The finance ministry added South Korea’s financial market may enjoy eased volatility in 2023 compared with this year on eased inflationary pressure as well.

Some 30 percent of the total debt sale will be issued with a maturity of two or three years, while the sale of Treasurys with a maturity of five or ten years will make up around 35 percent.

The remainder will be government bonds with a maturity of 20 years and longer.

The ministry added it plans to sell fewer government bonds in the first half of 2022 than in the second half, considering the market volatility.

It plans to issue around 50 to 60 percent of the planned volume in the first half of 2023, compared with 62 percent tallied in the January-June period of this year.

Source: Yonhap News Agency

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