South Korea sells 30-year government bond at 2.725%

South Korea sells 30-year government bond at 2.725%

South Korea has recently sold a 30-year government bond at a yield of 2.725%, according to the Ministry of Economy and Finance. The issuance, part of the country's broader debt management strategy, aims to secure funds for various fiscal needs while bolstering foreign currency reserves. This sale follows a series of bond offerings by the Export-Import Bank of Korea and the Industrial Bank of Korea, which have been instrumental in supporting the government's financial stability.

The 30-year bond sale, valued at 5.4 trillion won ($3.97 billion), represents a significant portion of South Korea's treasury bond issuance plan for July. The finance ministry has announced plans to sell a total of 18.2 trillion won ($13.44 billion) of treasury bonds through auctions in the coming month, including various maturities ranging from 3 to 50 years [2].

The sale of the 30-year bond was well-received by global investors, who demonstrated confidence in South Korea's economic prospects. The orderly transition of power following the impeachment of former President Yoon Suk Yeol has helped to alleviate political uncertainty, thereby attracting favorable market conditions for the issuance. The bond sale also signifies the country's return to the euro bond market after a four-year hiatus, with the issuance structured in two tranches: a 700-million-euro three-year note and a 700-million-euro seven-year note [1].

The Ministry of Economy and Finance has indicated that additional foreign currency bonds may be issued in the second half of the year, depending on market conditions. This strategic move is designed to strengthen the country's foreign currency reserves and ensure the timely repayment of maturing bonds. South Korea currently has about $1.9 billion remaining under its offshore bond sale quota for 2025, out of a $3.5 billion ceiling approved by the National Assembly [1].

References:
[1] https://www.kedglobal.com/sovereign-bonds/newsView/ked202506270001
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3ST06W:0-south-korea-to-sell-18-2-trln-won-of-t-bonds-in-july/