Gov't to conduct 5 tln-won emergency bond buyback amid heightened volatility

▲ The Ministry of Finance and Economy (Yonhap)

govt-bond buyback

Gov't to conduct 5 tln-won emergency bond buyback amid heightened volatility

SEOUL, March 26 (Yonhap) -- The government will conduct an emergency bond buyback worth 5 trillion won (US$3.3 billion) to stabilize the government bond market, which has recently experienced heightened volatility, the finance ministry said Thursday.

The buyback will be carried out on two separate two days -- 2.5 trillion won Friday and another 2.5 trillion won next Wednesday -- as the government seeks to reduce the economic impact of the prolonged war in the Middle East.

The ministry also plans to push for the net redemption of government bonds using excess tax revenue as part of a supplementary budget bill.

If approved, it would mark the first net redemption of government bonds through a supplementary budget in five years, since 2021.

The specific size will be determined during Cabinet deliberations and a parliamentary review, the ministry said.

Earlier in the day, the ruling Democratic Party and the government agreed to submit the extra budget bill to the National Assembly on Tuesday, aiming to ease the burden of rising oil prices and support small and midsize businesses, as well as vulnerable households affected by the prolonged conflict.

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