Ministry of Economy and Finance

Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok attended the first day of the Second G20 Finance Ministers and Central Bank Governors Meeting held on April 23 in Washington, D.C., to exchange views with his counterparts on recent global economic and financial issues.   * (Day 1, April 23) Global economic and financial sector issues (Session 1) (Day 2, April 24) International financial architecture (Session 2), Barriers to economic growth to Africa (Session 3)   DPM Choi concurred with the views of international organizations and major economies that global economic uncertainty has significantly increased, driven by heightened policy uncertainty, elevated levels of public and private debt, volatility in global financial markets, and climate and demographic risks. He proposed three key areas for future discussions among G20 members to address rising global economic risks: ①Joint efforts to establish a sustainable multilateral trading system, ②strengthening response frameworks to cope with increasing financial market volatility, and ③structural reforms to secure mid- to long-term growth drivers.   Above all, he emphasized that Korea is a beneficiary of an open and barrier-free multilateral trading system and contributes as one pillar of the global supply chain. He called on the international community to jointly seek solutions to secure the sustainability of the multilateral trading system, including addressing global imbalances. In addition, he mentioned that in order to preemptively respond to growing concern over heightedned financial market volatility, member states should safeguard fiscal soundness as the ultimate backstop in times of crisis, while reassessing and bolstering the global financial safety net. Lastly, he stressed the importance of voluntary and preemptive structural refroms at the national level in addressing structural challenges such as demographic shifts and climate change, noting that sharing best practices among G20 nations would be highly beneficial.   Furthermore, DPM Choi held bilateral meetings with finance ministers from major economies and heads of international organizations on the sidelines of his visit to Washington.   Upon his arrival in Washington on April 22, he met with Polish Finance Minsiter Andrzej Domański, whose country currently holds the Presidency of the Council of the European Union. The two discussed ways to shore up bilateral economic partnership, including defense industry collaboration such as the export of K2 tanks, and the convening of the second Korea-Poland Economic Dialogue. DPM Choi noted that both Korea and Poland share the commonality of being strategically located and highly dependent on external trade, expressing his hopes for the successful conclusion of the second export contract for K2 tanks. Minister Domański remarked that defense cooperation has deepened ties between Korea and Poland, and highly appreciated the Korean government’s efforts to support Ukraine’s reconstruction.   DPM Choi also met with World Bank (WB) President Ajay Banga. Marking the 70th anniversary of Korea’s accession to the WB Group, DPM Choi and President Banga agreed to step up partnership in the digital sector, including the establishment of a Digital Knowledge Center at the WB’s Korea Office and the creation of a new Korea Digital Trust Fund whithin this year. In particular, DPM Choi asked for President Banga’s support for increasing the recruitment of Korean nationals and expanding their representation in senior positions in the WB, as part of efforts to boost bilateral cooperation. Not only that, he met with Canadian Minister of Finance François-Philippe Champagne on the sidelines of the G20 meeting to share views on global uncertainties.   On April 23, DPM Choi held a meeting with Chinese Finance Minister Lan Fo’an to exchange a broad range of views on key international financial issues, including cooperation with multilateral development banks (MDBs). DPM Choi, noting the 10th anniversary of the launch of the Asian Infrastructure Investment Bank (AIIB), expressed his hopes for the successful hosting of the upcoming Annual Meeting in Beijing. He discussed ways to enhance cooperation on MDBs with Minister Lan and proposed that both countries work closely together to ensure tangible outcomes at next month’s ASEAN+3 Finance Ministers’ Meeting, where China will serve as the chair. He also requested China’s continued attention and cooperation for the successful advancement of the Asia-Pacific Economic Cooperation (APEC) Finance Minsiters’ Meeting, which Korea is chairing this year. Please refer to the attached files.   

The Ministry of Economy and Finance plans to issue Korea Treasury Bonds worth approximately 17,500 billion won in May 2025 through competitive bidding.   Auction Schedule, May 2025 (Unit: KRW billion) Name Auction Notice Auction Date Settlement Date Issue Date Type Volume 2Y KTB 02625-2703 (25-1) April 24 April 28 April 29 March 10, 2025 F1 1,800 3Y KTB 02875-2712 (24-12) May 7 May 12 May 13 December 10, 2024 F 1,600 3Y KTB 00000-2806 (25-4) May 7 May 12 May 13 June 10, 2025 P2 1,600 5Y KTB 02625-3003 (25-3) May 21 May 26 May 27 March 10, 2025 F 2,900 10Y KTB 03000-3412 (24-13) May 14 May 19 May 20 December 10, 2024 F 1,250 10Y KTB 00000-3506 (25-5) May 14 May19 May 20 June 10, 2025 P 1,250 20Y KTB 02875-4409 (24-10) May 22 May 27 May 28 September 10, 2024 F 500 30Y KTB 02625-5503 (25-2) April 24 April 29 April 30 March 10, 2025 F 5,800 50Y KTB 02750-7409 (24-11) May 13 May 16 May 19 September 10, 2024 F 800 Conversion offer Conventional May 15 May 20 May 22 March 10, 2025 F 400 Inflation-linked April 29 May 7 May 9 December 10, 2024 F 100   FXB 00000-2605 (25-5) May 20 May 23 May 26 May 10, 2025 N/A 1,800 1.       Fungible issue 2.       Pre-issuance * 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 3,340 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, 234 billion won for 3Y and 5Y KTBs, 284 billion won for 10Y and 30Y KTBs, and 180 billion won for 20Y KTBs. PDs that have obtained the right to purchase these KTB STRIPS can make purchases of up to 20 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 May 22 with a detailed plan.     4) Conversion offer   Date KTB to be issued KTBs to be purchased Amount May 20 10:40-11:00 am 30Y KTB 02625-5503 (Maturing on March 10, 2055)   KTB 05500-2912 (09-5) KTB 04000-3112 (11-7) KTB 03375-3206 (22-5)  KTB 04250-3212 (22-14)  KTB 04125-3312 (23-11)  KTB 03250-4209 (22-11) KTB 03000-4212 (12-5)   * Further details will be provided on     May 15 through the BOK website.   KRW 400 billion May 7 10:40-11:00 am 10Y KTB 03000-3412 (Maturing on December 10, 2034)   KTBi 01000-2606 (16-5) KTBi 01750-2806 (18-5) KTBi 01125-3006 (20-5) KTBi 01625-3206 (22-6)   * Further details will be provided on April 29 through the BOK website.   KRW 100 billion     Please refer to the attached PDF. 

On April 21, Deputy Minister for International Affairs Choi Ji-young met with Executive Director of the Green Climate Fund (GCF)* Mafalda Duarte at the Government Complex-Seoul to discuss ways to strengthen cooperation between Korea and the GCF.   * The Green Climate Fund (GCF): The world’s largest climate fund established in 2010 to support greenhouse gas reduction and climate change adaptation efforts in developing countries. Its Secretariat is headquartered in Songdo, Incheon.   Deputy Minister Choi emphasized the need to further enhance cooperation between Korea and the GCF. In this regard, he requested the GCF’s interest in designating Korean institutions – such as the Asian Forest Cooperation Organization (AFoCO)* – as accredited entities*. He also underlined the importance of expanding recruitment opportunities for Koreans across various levels, including senior positions and youth, in the GCF and of enhancing communication with Korean youth.    * Asian Forest Cooperation Organization (AFoCO): An international organization established in 2018 under the leadership of Korea to lead international forest-related issues in Asia, such as climate change and desertification. * The GCF designates accredited entities to implement projects and channels funding to these institutions.   The GCF expressed its appreciation for Korea’s continued interest and expanding contributions, including the implementation of its $300 million contribution during the second replenishment period (2024 – 2027). The GCF also conveyed its intention to bolster partnership with Korea across a variety of areas through the collaboration with Korea’s accredited entities: Korea Development Bank, the Korea International Cooperation Agency, and SK Securities.   The Ministry of Economy and Finance and the GCF agreed to institutionalize their annual consultations and maintain close, ongoing communication in order to enhance their cooperation for the development of the GCF and the global response to climate change.   Please refer to the attached files.