South Korea Expands Foreign Bond Issuance to $5 Billion Amid Dollar Demand Surge
South Korea tripled its 2026 foreign bond issuance target to $5 billion as it capitalizes on a $350 billion U.S. investment deal. The MOVE comes as the won faces sustained depreciation pressure from robust dollar demand, elevated oil prices, and global trade concerns.
The government will sell bonds across maturities ranging from 2 to 50 years, allowing participation from both long-term investors like pension funds and short-term players including banks. October saw $1.7 billion in dollar and yen-denominated bond sales at record-low spreads over U.S. Treasuries, reflecting strong market confidence.
Fitch's 'AA-' and S&P's 'AA' ratings underscore Korea's creditworthiness despite currency pressures. The bond program serves dual purposes: spreading debt obligations over time while attracting foreign capital to stabilize exchange markets.
