Seoul: South Korea's finance ministry announced on Thursday the issuance of euro-denominated foreign exchange (FX) stabilization bonds valued at 1.7 billion euros (US$1.94 billion), highlighting the nation's strong position in the global financial arena.

According to Yonhap News Agency, the Ministry of Finance and Economy revealed that the bonds were issued the day before, with three and seven-year maturities, marking South Korea's most extensive euro-denominated FX stabilization bond release to date.

The FX stabilization bonds are strategically issued to amass foreign currency reserves, aiding the country in managing external financial uncertainties. This issuance includes two segments: 700 million euros in three-year bonds with a yield of 2.981 percent, and 1 billion euros in seven-year bonds yielding 3.285 percent.

Furthermore, the ministry noted that this issuance achieved historically low spreads for both maturities, with three-year bonds at 10 basis points and seven-year bonds at 28 basis points. This reflects global investors' confidence in the South Korean economy.

"The foreign currency assets secured through the issuance of the FX bonds will serve as a strong buffer against unexpected changes in external conditions, helping maintain a resilient economy," the finance ministry stated. The ministry also emphasized the significance of the issuance amid growing uncertainties, such as geopolitical concerns in the Middle East.

Ahead of the issuance, the government shared its economic vision with major institutional investors, emphasizing South Korea's ambitions to become a leading powerhouse in artificial intelligence and its efforts to advance the capital market.