South Korea announces emergency repurchase of 5 trillion KRW in government bonds to stabilize the bond market

2026-03-26 17:07:20

South Korea’s Ministry of Finance announced on Thursday that the government will urgently repurchase 5 trillion won (approximately $3.3 billion) of government bonds to stabilize the recently volatile bond market.

The repurchase will be carried out over two days, with 2.5 trillion won repurchased on Friday and another 2.5 trillion won next Wednesday, aiming to mitigate the impact of the prolonged Middle Eastern conflict on the Korean economy.

The Ministry of Finance also plans to use excess tax revenue to promote net redemption of government bonds through a supplementary budget.

If approved, this will be Korea’s first net redemption of government bonds since 2021 through a supplementary budget.

The Ministry of Finance stated that the specific amount will be determined after cabinet review and parliamentary approval.

Earlier that day, the Korean government agreed to submit a supplementary budget to the National Assembly on Tuesday to ease pressure from rising oil prices and support small and medium-sized enterprises as well as vulnerable households affected by the long-term conflict.

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