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

Finance Minister Lee Hyoung-il stated on Friday that the government of Korea may further reduce Treasury bond issuance as needed, vowing to remain watchful of the market. This comment followed Korea's decision in October to lower Treasury bond issuance by 5 trillion won ($3.64 billion), with the administration also promising to implement stabilization tactics, such as emergency bond purchases, if necessary.

Lee engaged in this conversation during a summit with Bank of Korea Governor Shin Hyun-song, Financial Services Commission Chair Lee Eog-weon, Financial Supervisory Service Governor Lee Chan-jin, and Land Minister Hong Jee-sun. It signified the inaugural gathering of its kind since Lee assumed office last month. Should elevated interest rates endure, enterprises with lower credit scores might encounter more considerable refinancing challenges.

Lee affirmed that the administration would persist in closely observing the bond market in collaboration with pertinent agencies. Furthermore, during the assembly, Lee underscored the importance of keeping a close eye on the housing market, pointing out that the rise in Seoul apartment prices has decelerated for five successive weeks.