Ministry of Finance and Economy

The Ministry of Finance and Economy plans to issue Korea Treasury Bonds worth approximately 12,000 billion won in November 2026 through competitive bidding.   Auction Schedule, November 2026 (Unit: KRW billion) Name Auction Notice Auction Date Settlement Date Issue Date Type Volume 2Y KTB 03625-2809 (26-7) October 29 November 2 November 3 September 10, 2026 F1 1,800 3Y KTB 03500-2906 (26-5) November 4 November 9 November 10 June 10, 2026 F 1,100 3Y KTB 00000-2912 (26-12) November 4 November 9 November 10 December 10, 2026 P2 1,100 5Y KTB 04125-3109 (26-9) November 18 November 23 November 24 September 10, 2026 F 2,300 10Y KTB 04250-3606 (26-6) November 11 November 16 November 17 June 10, 2026 F 1,100 10Y KTB 00000-3612 (26-13) November 11 November 16 November 17 December 10, 2026 P 1,100 20Y KTB 04500-4609 (26-10) November 19 November 24 November 25 September 10, 2026 F 800 30Y KTB 04500-5609 (26-8) October 29 November 3 November 4 September 10, 2026 F 2,000 50Y KTB 04625-7609 (26-11) November 10 November 13 November 16 September 10, 2026 F 700 Conversion Offer Conventional November 12 November 17 November 19 September 10, 2026 F 400 Inflation-linked November 3 November 6 November 10 June 10, 2026 F 100   FXB 00000-2711 (26-11) November 17 November 20 November 23 November 10, 2026 N/A 1,200 1.       Fungible issue 2.       Pre-issuance   * Under a fungible issue system, new KTBs issued within a specified period (six-month period for 2Y, 3Y, 5Y, 10Y and 30Y KTB, one-year period for 20Y KTB, and two-year period for KTBi and 50Y KTB) are regarded as the same KTB issue.     1) Non-competitive bids option I   For retail investors, KTBs worth 2,260 billion won (no more than 20% of the offered amount in the auction excluding 50Y KTBs) will be allocated first at the highest accepted bid rate.   2) Non-competitive bids option II   A non-competitive purchasing option II is granted to primary dealers (PD) whereby PDs can make additional purchases of 5-30%* of the accepted bid amount within three business days after the auction.   * Up to 20%p of the option is granted to the top-performing PDs, 15%p to the 2nd best-performing PDs, 10%p to the 3rd best-performing PDs, and 5%p to the rest, according to their market-making performances for the last six months. MOEF will grant additional 5-10%p to best performing PDs in the monthly evaluation.   3) Non-competitive bids option III   KTB STRIPS* are supplied on the third business day after the auctions, 310 billion won for 3Y, 5Y, and 10Y KTBs, 360 billion won for 30Y KTBs, and 160 billion won for 20Y KTBs. PDs that have obtained the right to purchase these KTB STRIPS can make purchases of up to 25 billion won.   ＊Non-competitive option Ⅵ Details have yet to be decided. If non-competitive option Ⅵ needs to be implemented, the Ministry will make an announcement on November 19 with a detailed plan.   4) Buyback   Date KTBs to be purchased Amount November 18 10:40-11:00 am   KTB 03250-2706 (24-4) KTB 03125-2709 (22-8) KTB 03000-2803 (26-1) KTB 03250-2803 (23-1) KTB 02250-2806 (25-4)   KRW 2,000 billion * Further details will be provided on November 13 through the BOK website.   5) Conversion offer   Date KTBs to be issued KTBs and KTBis to be purchased Amount November 6 10:40-11:00 am 10Y KTB 04250-3606 (26-6) (Maturing on June 10, 2036)   KTBi 01750-2806 (18-5) KTBi 01125-3006 (20-5) KTBi 01625-3206 (22-6) KTBi 00750-3406 (24-6)   * Further details will be provided on November 3 through the BOK website. KRW 100 billion November 17 10:40-11:00 am 30Y KTB 04500-5609 (26-8) (Maturing on September 10, 2056)   KTB 01875-5103 (21-2) KTB 03250-5303 (23-2) KTB 03250-5403 (24-2) KTB 02750-5409 (24-8) KTB 02625-5503 (25-2)   * Further details will be provided on November 12 through the BOK website. KRW 400 billion  

On October 29, Deputy Prime Minister and Minister of Finance and Economy (MOFE) Lee Hyoung Il chaired an Expanded Meeting on Macroeconomic and Financial Stability[1] with relevant authorities at the Korea Federation of Banks Building. The meeting reviewed recent developments in global financial markets and their impact on Korea’s financial markets following the U.S. Federal Open Market Committee’s (FOMC) policy rate decision and discussed policy responses.   The following are the key messages from DPM Lee’s remarks.   [U.S. FOMC Decision and Global Financial Markets]   The U.S. Federal Reserve (Fed) kept its policy rate unchanged at 3.75 – 4.00 percent at its FOMC meeting overnight.   The decision is seen as an effort to assess the future course of monetary policy while maintaining its commitment to price stability and evaluating the impact of September’s rate hike and incoming economic data.        With long-term interest rates remaining elevated in the U.S. and other major economies, earnings and investment outlooks for leading technology companies, along with movements in global oil prices, are contributing to increased volatility in domestic and global financial markets.   The potential market impact of changes in the composition of the U.S. Congress following next week’s midterm elections, as well as shifts in U.S. foreign policy resulting from changes in the political landscape, also needs to be closely monitored.   The government will work closely with relevant authorities to monitor the impact of changes in U.S. foreign policy, global oil prices, and global capital flows on domestic financial and foreign exchange (FX) markets, and respond promptly when necessary.   [Future Policy Directions]   The domestic stock market has experienced heightened volatility, with repeated sharp declines and rebounds amid shifting global interest rate expectations, geopolitical uncertainties in the Middle East, and concerns over the profitability of AI investments and the outlook for the semiconductor industry.   Nevertheless, the Korean economy continues to demonstrate solid fundamentals, with GDP growing by 1.0 percent quarter on quarter in the third quarter and economic growth projected to reach the mid-3 percent range this year.   The Korean Treasury Bond market has shown signs of stabilization, with yields declining following the announcement of a reduction in issuance volume for October. However, external uncertainties persist, including the U.S. midterm elections and fiscal concerns in France. The government will closely monitor the risk of these uncertainties spilling over into the Korean Treasury Bond market and carefully review issuance volume for November. If necessary, market stabilization measures, including emergency buybacks of Korean Treasury Bonds, will be implemented in a timely manner in close coordination with relevant authorities.   At today’s meeting, the impact of rising lending rates on vulnerable borrowers will be assessed.   As recent interest rate increases are reflected in lending rates with a time lag, the debt repayment burden on vulnerable borrowers is growing.   To alleviate this burden, the government will implement the previously announced support measures as planned, while continuing to monitor the impact of changing financial market conditions on vulnerable borrowers and the financial sector and preparing additional measures as needed.   A roadmap for shortening the equity settlement cycle from the current T+2 to T+1 will also be discussed today.   Shortening the settlement cycle is an important initiative that can reduce settlement-related risks and improve the efficiency of the use of funds.   However, ensuring a smooth transition requires careful consideration of the readiness of financial investment firms and domestic and foreign investors, settlement and FX liquidity, system stability, and progress toward shorter settlement cycles in major Asian economies.   Starting next week, relevant institutions, including the Korea Exchange and Korea Securities Depository, will seek extensive feedback from market participants, including financial investment firms and domestic and foreign investors, on the draft roadmap for the transition to T+1 settlement. [1] Governor of the Bank of Korea, Chairman of the Financial Services Commission, and Governor of the Financial Supervisory Service Please refer to the attached files. 

On October 28, Deputy Prime Minister and Minister of Finance and Economy Lee Hyoung Il met with Head of Asia Pacific at Bloomberg Bing Li, to discuss ways to cooperate in advancing Korea’s financial markets.   During the meeting, Deputy Prime Minister Lee explained that the Korean government has continued to improve market accessibility for foreign investors following Korea’s inclusion in the World Government Bond Index (WGBI) in April 2026, and that Korea’s government bond market has gained international prominence and attracted growing interest from global investors. He also conveyed the need to review whether Korea’s classification as an emerging market in Bloomberg’s bond index* remains appropriate, given Korea’s standing in the global economy, the growth of its government bond market, and improvements in market accessibility. In particular, he highlighted that Korea is classified as an advanced economy by the International Monetary Fund and the World Bank and has made significant progress in improving market accessibility in recent years. He requested Bloomberg’s continued attention and cooperation to ensure that these achievements are fully reflected in its future review of country classifications.   * The Bloomberg Global Aggregate Index is one of the world’s three major global bond indices. Korea has been included in the index since 2002.   Deputy Prime Minister Lee also emphasized the importance of communication with global investors so that the government’s efforts to improve foreign exchange and capital market regulations can lead to increased investment. He called on Bloomberg to support communication between the government and markets through its various channels, including financial information services and media.   In response, Bing Li acknowledged the importance of continued communication and cooperation with the Korean government and reaffirmed Bloomberg’s commitment to working together to enhance global investor’s understanding of Korea’s financial markets and strengthen the connection between the government and markets.   Please refer to the attached files.