South Korea to consider cutting bond issuance if needed

South Korea's finance minister, Lee Hyoung-il, stated on Friday that the government will consider further reducing Treasury bond issuance if necessary, emphasizing continuous monitoring of the market. This statement comes after the government decided to cut its Treasury bond issuance by 5 trillion won (US$3.64 billion) for October and pledged to implement stabilization measures, including potential emergency bond buybacks.

Minister Lee made these remarks during a meeting with other key financial and land officials, including Bank of Korea Governor Shin Hyun-song, Financial Services Commission Chairman Lee Eog-weon, Financial Supervisory Service Governor Lee Chan-jin, and Land Minister Hong Jee-sun. This was the first such meeting since Lee assumed office last month.

Lee highlighted concerns that persistent high interest rates could increase refinancing burdens for businesses with lower credit ratings. He assured that the government, in collaboration with relevant agencies, would maintain close observation of the bond market.

Additionally, during the meeting, Lee stressed the importance of monitoring the property market, noting a slowdown in Seoul apartment price growth for five consecutive weeks, although prices outside the Gangnam area continue to increase. He also reaffirmed the commitment to implementing follow-up measures for the internationalization of the Korean won and indicated that steps to ease related regulations would be announced soon.