Gov't to consider further reducing Treasury bond issuance if necessary: finance minister

South Korea's finance minister stated on Friday that the government may further reduce Treasury bond issuance if necessary, vowing to keep a close eye on the market. The announcement followed a decision by the South Korean government to cut Treasury bond issuance by 5 trillion won (US$3.64 billion) in October, with additional measures planned, such as emergency bond buybacks if required.

During a meeting with officials from the Bank of Korea, Financial Services Commission, Financial Supervisory Service, and the Ministry of Land, Environment and Maritime Affairs, the finance minister discussed the matter. This was the first such meeting since the minister's appointment last month. The government aims to monitor the bond market closely, especially if high interest rates continue to cause challenges for businesses with lower credit ratings.