South Korea May Cut Treasury Bond Issuance Further Amid High Interest Rates

South Korea’s finance minister, Lee Hyoung-il, indicated that the government is prepared to reduce Treasury bond issuance beyond the 5 trillion-won cut planned for October if market pressures demand it. Speaking at a coordination meeting with the governor of the Bank of Korea, Shin Hyun-song, the chairman of the Financial Services Commission, Lee Eog-weon, the governor of the Financial Supervisory Service, Lee Chan-jin, and land minister Hong Jee-sun, Lee emphasized the need to monitor the bond market closely.

He warned that continued high interest rates could increase refinancing costs for companies with weaker credit ratings. The meeting also reviewed the property sector, noting five weeks of flat apartment price growth in Seoul while prices elsewhere, outside the affluent Gangnam district, keep climbing. Additionally, Lee pledged to announce measures to ease regulations related to the internationalization of the Korean won. Emergency bond buybacks remain on the table as a stabilization tool.