Group 1 - Foreign investors continued to be net buyers of South Korean bonds in 2025, with net purchases nearly doubling compared to the previous year, amounting to 147.1 trillion KRW (approximately 100.1 billion USD), an increase of 72.2 trillion KRW or 96.4% from 2024 [1][4] - As of the end of last year, the total bond holdings by foreign investors reached 338.3 trillion KRW, influenced by factors such as bond yield fluctuations, changes in the USD/KRW exchange rate, and expectations of South Korea's inclusion in the World Government Bond Index (WGBI) [2][5] - In contrast, domestic retail investors in South Korea saw a 24% decrease in net bond purchases, dropping to 31.7 trillion KRW, amid a rising stock market and increased risk appetite [2][5] Group 2 - The issuance of South Korean bonds in 2025 grew by 11.5% year-on-year, reaching 969.7 trillion KRW [3][6] - Government bond issuance increased by 37% to 304.6 trillion KRW, while corporate bond issuance rose by 7% to 129.4 trillion KRW [3][6]

Core Viewpoint - The South Korean Ministry of Finance plans to issue 20 trillion won (approximately 13.9 billion USD) in government bonds for individual investors by 2026, increasing the issuance scale by about 8 trillion won compared to this year's 12 trillion won [1][2]. Group 1 - The issuance of new 3-year bonds will begin in April, driven by rising demand for short-term bonds [1][2]. - The initiative aims to alleviate the holding burden on investors and diversify investment options [1][2]. - The additional interest rate on the new bonds will not exceed the rates offered by similar instruments [1][2].

Core Viewpoint - South Korea plans to issue 18.2 trillion won in government bonds in July [1] Group 1 - The issuance of government bonds is part of South Korea's fiscal strategy [1] - The total amount of 18.2 trillion won is approximately 15.4 billion USD based on current exchange rates [1]