13.4 Tril. Won Worth of Bonds to Be Issued to Primary Dealers

The Ministry of Economy and Finance is planning to issue government bonds worth a total of 13.4 trillion won next month based on a competitive bidding of primary dealers.

The South Korean government has designated primary government bond dealers in order to promote issuance and distribution. At present, seven banks and 10 securities companies are such dealers with certain obligations and rights. The obligations include underwriting, purchase, exchange, distribution and policy cooperation and the rights include participation in the government bond issuance market and non-competitive underwriting.

The government bonds to be issued are divided into 2.95 trillion won of three-year (June 2), 2.6 trillion won of five-year (June 9), 3.15 trillion won of 10-year (June 16), 850 billion won of 20-year (June 23), 3.1 trillion won of 30-year (June 3), and 750 billion won of 50-year (June 15).

In addition, the ministry is going to conduct a 100 billion won exchange between the latest and non-latest Inflation-linked Korea Treasury Bonds on June 19 for the purpose of government bond liquidity enhancement.

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