Why is Korea considering further reducing Treasury bond issuance in October 2026?

Finance Minister Lee Hyoung-il said the government will keep monitoring the bond market closely and may cut issuance further if needed. He warned that if high interest rates persist, lower-rated companies could face greater refinancing burdens.

What did Korea say about the property market and Seoul apartment prices?

Lee said the government needs to closely monitor the property market. He noted that Seoul apartment price growth has slowed for five consecutive weeks, while housing prices outside the affluent Gangnam area continue to rise.

What follow-up steps did Korea mention for the internationalization of the Korean won?

Lee said the government will continue implementing follow-up measures for won internationalization and plans to announce steps to ease related regulations soon. The remark came during the first meeting of its kind since he took office last month.

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

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Summary

Finance Minister Lee Hyoung-il said on Friday that Korea will consider further reducing Treasury bond issuance if necessary, after the government cut October issuance by 5 trillion won. He said the government will keep closely monitoring the bond market and may use emergency bond buybacks if needed. Lee also said the property market should be watched closely and that follow-up steps to internationalize the Korean won will be announced soon.

Key Facts

Korea reduced Treasury bond issuance by 5 trillion won, or $3.64 billion, in October.
Finance Minister Lee Hyoung-il said the government will consider further cuts in issuance if necessary.
Lee met with Bank of Korea Gov. Shin Hyun-song, Financial Services Commission Chairman Lee Eog-weon, Financial Supervisory Service Gov. Lee Chan-jin and Land Minister Hong Jee-sun.
The government said emergency bond buybacks could be used if needed.
Lee said growth in Seoul apartment prices has slowed for five consecutive weeks, while housing prices outside the Gangnam area continue to rise.

By Yonhap

Published Oct 2, 2026 10:39 am KST

From left, Bank of Korea Gov. Shin Hyun-song, Finance Minister Lee Hyoung-il and Land Minister Hong Jee-sun attend a market review meeting held at Korea Federation of Banks in Seoul, Friday. Yonhap

The finance minister on Friday said Korea will consider further reducing Treasury bond issuance if necessary, pledging to continue closely monitoring the market.

Finance Minister Lee Hyoung-il's remark came after Korea decided to reduce Treasury bond issuance by 5 trillion won ($3.64 billion) in October, with the government also pledging to implement stabilization measures, including emergency bond buybacks, if needed.

Lee discussed the issue during a meeting with Bank of Korea Gov. Shin Hyun-song, Financial Services Commission Chairman Lee Eog-weon, Financial Supervisory Service Gov. Lee Chan-jin and Land Minister Hong Jee-sun.

It marked the first meeting of its kind since Lee took office last month.

"If high interest rates persist, businesses with lower credit ratings could face greater refinancing burdens. The government will continue to closely monitor the bond market in cooperation with relevant agencies," Lee said.

During the meeting, Lee also stressed the need to closely monitor the property market, noting that growth in Seoul apartment prices has slowed for five consecutive weeks, while housing prices outside the affluent Gangnam area continue to rise.

Lee also stressed the need to continue implementing follow-up measures for the internationalization of the Korean won, pledging to announce steps to ease related regulations soon.

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