Korea to monitor impact of rising bond yields around globe

South Korea plans to keep a close eye on its government bond market as long-term bond yields rise worldwide, according to Finance Minister Koo Yun-cheol. The minister disclosed this during a discussion with financial experts, stating that the country is witnessing unprecedentedly high yields in major economies such as the United States, Japan, and European nations. These yields have surged to their highest levels in decades due to increased government spending and geopolitical tensions, particularly in the Middle East.

The meeting was attended by key officials from the Financial Services Commission, the Financial Supervisory Service, and the Bank of Korea. Koo emphasized that the government will closely monitor the issuance and trading of government bonds to ensure the stability of the market. He also mentioned that Seoul will strive to keep borrowing costs affordable for businesses and households.

Interestingly, the Korean won reached a level of 1,300 per U.S. dollar for the first time in 11 months this week, following its plunge to 1,550 per dollar in early July. This depreciation occurred amid the nation's record-breaking economic performance.