Seoul: Foreign investors net purchased 22.7 trillion won (US$15.1 billion) worth of South Korean Treasury bonds since the country began the phased inclusion in the World Government Bond Index (WGBI), a key global bond benchmark operated by FTSE Russell, the finance ministry said Friday. The net purchase of bonds occurred from March 30 through Wednesday, with 18 trillion won in settlements actually made since April 1, according to the Ministry of Finance and Economy.

According to Yonhap News Agency, in April, South Korea began its phased eight-month inclusion into the WGBI, a leading index tracking government bonds from more than 20 major economies, including the United States, Japan, and China. The finance ministry highlighted the significance of the latest figures amidst the increasing volatility in global financial markets following the war in the Middle East.

The ministry official noted that a substantial amount of foreign funds entered the local market in April and May. The inflow of new investors, including those from Japan, is expected to broaden the investor base and contribute to the long-term stability of the market. The phased inclusion into the WGBI marks a pivotal moment for South Korea, potentially enhancing its appeal as a favorable investment destination amidst global uncertainties.