SEJONG, Nov. 8 (Korea Bizwire) – South Korea’s finance minister said Wednesday that he will gradually expand the issuance of longer-term Treasury bonds in a bid to raise government funds for fiscal projects in a more reliable manner.
“The South Korean government will increase the percentage of long-term state bonds in order to finance mid- and long-termfiscal plans on a stable basis and to keep up with the fast-changing market demand,” Finance Minister Kim Dong-yeon said in a Seoul conference. “The government will hear the market players.”
Last year, the government decided to sell state bonds that mature in 50 years, saying that the country’s fiscal health and strong macroeconomic fundamentals can help it successfully issue such debts.
South Korea currently sells six types of state bonds with maturities ranging from three-year debts to 50-year bonds, with those with a maturity of three years and five years accounting for 46 percent of the total bond sales as of 2016.
In an earlier plan, the finance ministry said it would sell 103.7 trillion won (US$93.1 billion) worth of Treasurys in 2017, down 5.8 percent from the previous year. Some 1 trillion won worth of the 50-year Treasurys will be sold this year.