Seoul: South Korea will not issue new government bonds for retail investors next month, the Ministry of Economy and Finance said Friday. The decision is part of a strategy to manage risks and address the declining demand for these financial products, attributed to a bullish stock market.

According to Yonhap News Agency, this suspension is the second of its kind since December. The Korea Composite Stock Price Index has surged nearly 67 percent since the beginning of the year, reflecting a robust stock market. This significant rise has influenced the ministry's decision to halt the issuance of new bonds.

The ministry also mentioned that bonds worth 716.6 billion won (approximately US$489.2 million), issued for retail investors between June and November of last year, can be redeemed early next month. Investors opting for early redemption will receive the principal and interest calculated at the coupon rate applicable at the time of purchase.