Ministry of Economy and Finance

The Ministry of Economy and Finance plans to issue Korea Treasury Bonds worth approximately 10,500 billion won in August 2024 through competitive bidding.   Auction Schedule, August 2024 (Unit: KRW billion) Name Auction Notice Auction Date Settlement Date Issue Date Type Volume 2Y KTB 03250-2603 (24-3) August 8 August 13 August 14 March 10, 2024 F1 700 2Y KTB 00000-2609 (24-9) August 8 August 13 August 14 September 10, 2024 P2 400 3Y KTB 03250-2706 (24-4) August 7 August 12 August 13 June 10, 2024 F 2,000 5Y KTB 03250-2903 (24-1) August 21 August 26 August 27 March 10, 2024 F 1,000 5Y KTB 03000-2909 (24-7) August 21 August 26 August 27 September 10, 2024 P 600 10Y KTB 03500-3406 (24-5) August 13 August 19 August 20 June 10, 2024 F 2,000 KTBi 00750-3406 (24-6) August 6 August 9 August 12 June 10, 2024 F 100 20Y KTB 03875-4309 (23-9) August 22 August 27 August 28 September 10, 2023 F 300 20Y KTB 00000-4409 (24-10) August 22 August 27 August 28 September 10, 2024 P 100 30Y KTB 03250-5403 (24-2) July 31 August 5 August 6 March 10, 2024 F 1,800 30Y KTB 00000-5409 (24-8) July 31 August 5 August 6 September 10, 2024 P 1,200 50Y KTB 03500-7209 (22-12) August 12 August 16 August 19 September 10, 2022 F 300 Conversion offer Conventional August 14 August 20 August 22 March 10, 2024 F 500 1.  Fungible issue 2.  Pre-issuance   * Under a fungible issue system, new KTBs issued within a specified period (three-month period for 2Y KTB, six-month period for 3Y, 5Y and 10Y KTB, one-year period for 20Y and 30Y KTB, 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 2,040 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, 221 billion won for 3Y and 5Y KTBs, 271 billion won for 10Y and 30Y KTBs, and 170 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.   * Purchases are made in a stripped bond type, and the PDs have to meet their obligations of separating interest and principal for their purchases over the next month.   ＊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 August 22 with a detailed plan.   4) Buyback  Date KTBs to be purchased Amount    August 21 10:40-11:00 am   KTB 03375-2503 (23-3) KTB 02250-2506 (15-2) KTB 03125-2506 (22-4) KTB 01125-2509 (20-6) KTB 02250-2512 (15-8) KTB 01250-2603 (21-1) KTB 01875-2606 (16-3) KTB 01750-2609 (21-7)   KRW 3,000 billion * Further details will be provided on August 16 through the BOK website.   5) Conversion offer  Date KTB to be issued KTBs to be purchased Amount August 20 10:40-11:00 am 30Y KTB 03250-5403 (Maturing on March 10, 2054)   KTB 01375-3006 (20-4) KTB 02000-3106 (21-5) KTB 02375-3112 (21-11) KTB 03750-3312 (13-8) KTB 02250-3709 (17-5) KTB 02375-3809 (18-7) KTB 02000-4603 (16-1)   KRW 500 billion * Further details will be provided on August 14 through the BOK website. Please refer to the attached PDF.   

Hello. I’m an AI reporter Yang Yu-jin. I will report on 「The 2nd Plan for Regulatory Innovation and Resolution of On-site Difficulties in New Industrial Sectors」.  The plan is the second set of improvement measures for on-site regulations to realize a private sector-led dynamic economy. 20 policy tasks will be carried out through pan-governmental collaboration to support new industries and resolve on-site difficulties.  First, here are the support measures for new industries. In order to develop autonomous driving technology and revitalize the AI industry, the temporary driving permit for test autonomous vehicles will be extended from 5 years to a maximum of 9 years. Pseudonymization technology will be supported for small and medium-sized hospitals and startups in the health care sector. In addition, the government will support the commercialization of new eco-friendly technologies by establishing a more rational management system for waste plastic pyrolysis plants, and shifting those  responsible for PET recycling to the final producers of PET bottles, thereby easing the burden related to the use of renewable raw materials. The second page continues with support measures for new eco-friendly technologies. The government will simplify the licensing and inspection system for hydrogen prototypes used in R&D, and back up the development of new technologies and the supply of equipment for converting surplus renewable energy into other forms of energy.  Next up is improvement measures for on-site regulations. Aiming to create the Korean-version of Times Square, the government will push for early designation of free display zones for outdoor advertisements. Not only that, in consideration of financial difficulties faced by the corporate taxi industry, the government plans to ease the minimum holdings of taxi licenses. Corporate facility investment will be promoted by exempting permit and report processes for minor demolition works on buildings with low safety concerns. Institutional reforms have also been devised to tackle challenges facing the small businesses. The government will support R&D for ICT startups by relaxing the financial participation requirements when soliciting government R&D projects. Also, for 2 years from 2026, those who have completed a projection training course will qualify to operate film screenings at movie theaters. Going forward, the progress will be monitored to review the establishment of the system. Considering the hiring conditions of small and medium-sized workplaces, the criteria for assigning foreign workers to workplaces will be reasonably improved.  In the 2nd half of the year, the government will continue addressing on-site challenges rapidly so that the public can feel its impact. This is the end of the report.

Deputy Prime Minister Choi Sang-mok held the 4th Advisory Meeting on International Economic Affairs with experts on July 19 to review the impact of major countries’ economic and trade issues on the Korean economy, as well as response strategies. The Advisory Meeting on International Economic Affairs is an ad hoc meeting introduced in April this year with an aim to cope with global uncertainties by listening to views from various experts and incorporate them into government policies.   DPM Choi noted that given the strong Korea-US alliance, it is expected that the amicable economic cooperation in trade and investment between the two economies will be maintained regardless of changes in administrations; however, considering the high external dependence of the Korean economy, it is meaningful to monitor the developments in the US presidential election and their potential impacts on the Korean economy. Furthermore, regarding the third plenary session of the 20th Communist Party of China (CPC) Central Committee (July 15-18), where China’s economic policy direction for the next five years was discussed, he stressed the importance of preemptively assessing possible spillovers on the Korean economy ahead of its implementation.   Experts viewed that the outcome of the upcoming US presidential election likely hinges on swing states, same as the 2020 election; irrespective of the winner, a strengthening of policies to contain China is anticipated, which requires the need for the Korean government to prepare proactive response strategies. In addition, experts emphasized that the CPC Central Committee’s third plenary session focused on economic recovery, and thus it is crucial to monitor trends related to: ①the ‘new quality productive forces’ strategy centered on advanced manufacturing, ②opening-up efforts to attract foreign investment, and ③fiscal and tax reforms aimed at restoring people’s livelihoods stability. Please refer to the attached files.