An Il-hwan, Deputy Minister of Economy and Finance, "Measures to Strengthen National Bond Market Capacity to be Announced Next Month"

"High Level of Government Bond Issuance to Continue"
An Il-hwan, 2nd Vice Minister of Strategy and Finance, Holds Government Bond Market Review Meeting

Ahn Il-hwan, Vice Minister of Strategy and Finance, is delivering opening remarks while presiding over the 'Government Bond Market Review Meeting' held on the 24th at the Government Complex Seoul in Gwanghwamun, Seoul.

[Sejong=Asia Economy Reporter Kim Hyunjung] Ahn Ilhwan, the 2nd Vice Minister of the Ministry of Economy and Finance, announced that he is preparing measures to strengthen the capabilities of the government bond market and plans to announce the measures next month.

On the morning of the 24th, Vice Minister Ahn held a 'Government Bond Market Review Meeting' at the Government Complex Seoul in Gwanghwamun, Seoul, stating, "As the fiscal role expands further in response to uncertainties in the growth path and demographic changes, the issuance volume of government bonds will continue to remain at a high level in the future."

He explained, "It is certainly a challenging situation, but we need to use this situation not only as a crisis but as an opportunity to take our government bond market to the next level. To this end, we will comprehensively review and reorganize the framework for operating our government bond market, focusing policy efforts on establishing a foundation where abundant government bond volumes are stably absorbed and efficiently circulated."

He added, "The government is preparing a strategic plan to strengthen government bond market capabilities, focusing on strengthening the demand base for government bonds, stable management of issuance volumes, and building an efficient market infrastructure. After collecting various opinions from market participants and experts, the measures will be announced in October."

Additionally, Vice Minister Ahn announced that, considering the 4th supplementary budget, measures such as expanding the non-competitive bidding limit and widening the differential range of winning bid rates, which were temporarily applied during the 2nd and 3rd quarters to strengthen PD company acquisition capacity, will be extended until the 4th quarter.

Meanwhile, the meeting was attended by Vice Minister Ahn, the Director of the Treasury Bureau of the Ministry of Economy and Finance, the Head of the Government Bond Division, investment institution officials, and private research institute experts, where they discussed the supply and demand conditions of the government bond market, future response directions, and trends and outlook of the government bond market after the COVID-19 pandemic.