S. Korea to monitor impact of rising bond yields around globe

SEOUL, Aug. 21 (Yonhap) -- The South Korean government plans to keep a close eye on the impact of rising long-term bond yields worldwide, Finance Minister Koo Yun-cheol announced on Friday. Koo highlighted during a meeting with financial officials the rising yields in major economies, such as the United States, Japan, and Europe, which have reached their highest levels in decades.

This surge in yields is largely attributed to increased government spending and geopolitical uncertainties, particularly in the Middle East. The finance minister made these remarks during a gathering that included Financial Services Commission Chairman Lee Eog-weon, Financial Supervisory Service Governor Lee Chan-jin, and Bank of Korea Deputy Governor Park Jong-woo.

Koo emphasized that the government would closely monitor issuance and trading conditions within the government bond market with the aim of minimizing borrowing costs for businesses and households. Furthermore, he noted that the Korean won reached the 1,300 won level against the US dollar for the first time in 11 months, a significant shift from the 1,550 won level it hit in early July.

The currency's weakening has been influenced by a record current account surplus and the uncertain economic outlook stemming from geopolitical tensions and monetary policies adopted by major economies.