Seoul: South Korea will start issuing new three-year treasury bonds for retail investors next year as part of efforts to expand the investor base of the government bond market in line with the country's planned inclusion in a key global government bond index, Finance Minister Koo Yun-cheol said Thursday. Koo unveiled the plan during the 12th Korea Treasury Bond Conference, via a video message, stating that the country's government bond market will be able to establish a foundation for growth with the inclusion in the World Government Bond Index (WGBI) managed by FTSE Russell in April.

According to Yonhap News Agency, to attract foreign investment to the market, the country will newly introduce three-year treasuries for individual investors and provide regular interest for government bonds, while fostering demand for short-term bonds, such as fiscal notes and won-denominated foreign exchange bonds. The government will also devise measures to stabilize the bond market and manage potential risks by creating a dedicated team on monitoring and responding to market trends.

Next year's total government bond issuance ceiling will be at 225.7 trillion won (US$153.2 billion), with around 55-60 percent of the bonds to be issued in the first half, according to the Ministry of Economy and Finance. By maturity, some 35 percent of the bonds will be two-year and three-year bonds, 30 percent will comprise five to 10-year bonds, and 20 to 50-year bonds will account for 35 percent of the total, the ministry added.