Ministry of Economy and Finance

The Ministry of Economy and Finance plans to issue Korea Treasury Bonds worth approximately 16,000 billion won in January 2026 through competitive bidding.   Auction Schedule, January 2026 (Unit: KRW billion) Name Auction Notice Auction Date Settlement Date Issue Date Type Volume 2Y KTB 02250-2709 (25-6) December 30 January 5 January 6 September 10, 2025 F1 2,800 3Y KTB 02750-2812 (25-10) January 7 January 12 January13 December 10, 2025 F 2,900 5Y KTB 02500-3009 (25-8) January 21 January 26 January 27 September 10, 2025 F 2,500 10Y KTB 03250-3512 (25-11) January 14 January 19 January 20 December 10, 2025 F 2,200 20Y KTB 02625-4509 (25-9) January 22 January 27 January 28 September 10, 2025 F 500 30Y KTB 02625-5509 (25-7) December 31 January 6 January 8 September 10, 2025 F 4,300 50Y KTB 02750-7409 (24-11) January 13 January 16 January 19 September 10, 2024 F 800 Conversion Offer Conventional January 15 January 20 January 22 September 10, 2025 F 400 Inflation-linked January 6 January 9 January 13 December 10, 2025 F 100   FXB 00000-2701 (26-01) January 20 January 23 January 26 January 10, 2026 N/A 1,300 1.       Fungible issue   * Under a fungible issue system, new KTBs issued within a specified period (six-month period for 2Y, 3Y, 5Y, 10Y and 30Y KTB, one-year period for 20Y, and two-year period for KTBi and 50Y KTB) are regarded as the same KTB issue.     1) Non-competitive bids option I   For retail investors, KTBs worth 3,040 billion won (no more than 20% of the offered amount in the auction excluding 50Y KTBs) will be allocated first at the highest accepted bid rate.   2) Non-competitive bids option II   A non-competitive purchasing option II is granted to primary dealers (PD) whereby PDs can make additional purchases of 5-30%* of the accepted bid amount within three business days after the auction.   * Up to 20%p of the option is granted to the top-performing PDs, 15%p to the 2nd best-performing PDs, 10%p to the 3rd best-performing PDs, and 5%p to the rest, according to their market-making performances for the last six months. MOEF will grant additional 5-10%p to best performing PDs in the monthly evaluation.   3) Non-competitive bids option III   KTB STRIPS* are supplied on the third business day after the auctions, 284 billion won for 3Y, 5Y, and 10Y KTBs, 330 billion won 30Y KTBs, and 146 billion won for 20Y KTBs. PDs that have obtained the right to purchase these KTB STRIPS can make purchases of up to 25 billion won.   ＊Non-competitive option Ⅵ Details have yet to be decided. If non-competitive option Ⅵ needs to be implemented, the Ministry will make an announcement on January 22 with a detailed plan.   4) Conversion offer   Date KTBs to be issued KTBs and KTBis to be purchased Amount January 20 10:40-11:00 am 30Y KTB 02625-5509 (25-7) (Maturing on September 10, 2055)   KTB 03250-3306 (23-5) KTB 03750-3312 (13-8)  KTB 04125-3312 (23-11) KTB 03500-3406 (24-5) KTB 02625-3509 (15-6)  KTB 03250-4209 (22-11) KTB 03000-4212 (12-5)   * Further details will be provided on January 15 through the BOK website.   KRW 400 billion January 9 10:40-11:00 am   10Y KTB 03250-3512 (25-11) (Maturing on December 10, 2035)     KTBi 01750-2806 (18-5) KTBi 01125-3006 (20-5) KTBi 01625-3206 (22-6)   * Further details will be provided on January 6 through the BOK website.   KRW 100 billion      

On December 24, the Ministry of Economy and Finance announced tax support measures for domestic investment and foreign exchange (FX) stability, aimed at promoting the revitalization of the domestic capital market and addressing structural supply-demand imbalances in the FX market.   As overseas investments by individual investors have increased sharply in recent years, the need has arisen for enhanced FX risk management to mitigate volatility in investment returns. In addition, although the domestic stock market has delivered one of the strongest performances among global capital markets this year, individual investors’ overseas equity investments have surged, while their domestic equity investments have declined. At the same time, there has been a growing call to attract domestic employment and investment by encouraging the repatriation of overseas assets held by export-oriented companies. Against this backdrop, the Government intends to pursue the following three institutional reforms.   I.          Introduction of Tax Support for Reshoring Investment Accounts (RIAs)   First, temporary tax incentives (for a one-year period) will be granted on capital gains from overseas stocks for individual investors who sell overseas stocks held as of December 23, 2025, convert the proceeds into Korean won, and make long-term investments in domestic equities (e.g., by maintaining the investment for at least one year). Capital gains tax will be exempted up to a specified per-person cap on the amount of sales proceeds (e.g., KRW 50 million), with tax relief benefits applied differentially depending on the timing of the return to the domestic market.   II.       Introduction of FX Forward Contracts for Individual Investors and Establishment of Capital Gains Tax Deductions for FX Hedging   Second, in light of the limited range of FX risk management instruments available to individual investors, the Government will provide support to enable major securities firms to swiftly introduce FX forward selling products tailored for individual investors. Also, it will grant capital gains tax benefits for overseas stocks held as of December 23, 2025, where FX hedging (FX forward selling) is implemented.   From the perspective of individual investors, the measure is expected to help minimize FX losses resulting from future exchange rate declines (appreciation of the Korean won) without requiring them to sell their overseas stock holdings. In the FX market, an immediate increase in the supply of foreign currencies, including the U.S. dollar, is anticipated to contribute to market stability.   III.    Increase in the Income Exclusion Ratio for Dividend Income Received from Overseas Subsidiaries   Third, in order to mitigate double taxation on dividends received by domestic parent companies from their overseas subsidiaries, the Government will raise the income exclusion ratio for such dividend income from 95% to 100%.   With the implementation of these tax support measures, it is expected that a substantial portion of individual investors’ overseas stock holdings – amounting to USD 161.1 billion as of the end of the third quarter of 2025 (based on the International Investment Position) – will be redirected toward domestic investment or hedged against FX risk, thereby leading to an expansion in the supply of foreign currencies.   The Government plans to promptly pursue legislation to amend the Act on Restriction on Special Cases Concerning Taxation, with a view to fostering domestic investment and stabilizing the FX market. In particular, as part of efforts to encourage the repatriation of overseas assets, the tax incentives under (1) RIA and (2) FX hedging will be applied immediately upon the launch of RIAs and FX forward selling products for individual investors on or after January 1, 2026, while (3) the expanded income exclusion ratio will apply to dividends distributed on or after January 1, 2026. Please refer to the attached files. 

Korea’s OFDI, Q3 2025  (US $100 million, %, y-o-y) Korean OFDI 2023 2024 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Amount invested 182.7 161.1 150.7 165.8 166.2 163.7 146.9 183.9 159.2 153.8 160.6 Change (%) -36.0 -18.9 -21.3 4.1 -9.1 1.6 -2.5 10.9 -4.2 -6.0 9.3   Korea’s OFDI by industry (US $100 million, %, y-o-y) Korean OFDI Finance and insurance Manufacturing Information and communications Wholesale and retail trade Real estate and renting Q3, 2024 63.0 39.9 8.5 3.9 6.5 Q3, 2025 79.7 42.1 7.6 6.9 5.2 Change (%) 26.5 5.5 -10.8 78.0 -20.2 Korea’s OFDI by region (US $100 million, %, y-o-y) Korean OFDI North America Asia Europe Latin America Oceania Middle East Africa Q3, 2024 52.0 29.8 37.6 23.4 3.3 0.5 0.4 Q3, 2025 64.8 43.5 25.1 23.4 2.8 0.6 0.3 Change (%) 24.6 46.1 -33.1 0.4 -13.9 16.4 -30.4 Korea’s OFDI by country (US $100 million, %, y-o-y) Korean OFDI U.S. Cayman Islands Luxemburg Singapore Vietnam Q3, 2024 38.5 17.2 14.4 4.9 5.3 Q3, 2025 59.7 17.8 14.9 11.6 9.1 Change (%) 55.0 3.6 3.7 135.1 71.7   In the third quarter of 2025 (July-September), Korea’s outbound foreign direct investment (OFDI) totaled $16.06 billion, marking a 9.3% increase compared to the same period of the previous year ($14.69 billion). This also represents a rise of 4.4 % from the previous quarter ($15.38 billion), rebounding from the downward trend that had persisted since the first quarter of this year.     The increase in OFDI in the third quarter of 2025 is interpreted as the result of a combination of factors, including changes in global financial market conditions – such as an easing monetary policy stance and stabilization of the U.S. dollar – as well as reduced uncertainty in the investment environment following the conclusion of tariff negotiations between the U.S. and major economies.   Amid persistent concerns over a global economic slowdown and the ongoing reconfiguration of supply chains and the international trade order, the government will strengthen multifaceted communication and cooperation with major destination countries to ensure that Korean companies expanding overseas can conduct stable business operations. Please refer to the attached files.