South Korea to Issue Up to 222.8 Trillion Won in Bonds in 2028
MacroDigital Finance
South Korea plans to issue up to 222.8 trillion won (about 162.7 billion dollars) in government bonds in 2028, close to this year's record high, to support President Lee Jae-myung's expansionary fiscal policy. Of this amount, 110.7 trillion won will be used to repay maturing bonds, and 15.9 trillion won for operations to manage liquidity and market stability, resulting in net bond issuance of about 96.3 trillion won. The plan is part of the 2028 budget proposal announced by the government on Tuesday, which also sets a cap of 8 billion dollars for foreign bond issuance and 13.8 trillion won for stabilization won bonds. Although the figure is lower than the record 232 trillion won planned for 2026, staying above 200 trillion won could pressure the bond market. Kang Seung-won, a strategist at NH Investment & Securities, said that if bond issuance in 2027 exceeds 200 trillion won, it would cause discomfort among investors, especially as the government is likely to use supplementary budgets during the year.
