Foreign Investors Net Buy 37 Trillion Won in Korean Treasury Bonds Over Three Months Following WGBI Inclusion

Foreign investors have net purchased approximately 37 trillion won in Korean Treasury Bonds (KTBs) over the three months since the country's inclusion in the World Government Bond Index (WGBI).

The Ministry of Economy and Finance held the 8th meeting of the WGBI Monitoring and Investment Promotion Task Force at the Government Complex Seoul today (June 30), presided over by Hwang Soon-kwan, Director General of the Treasury Bureau, to review these trends in foreign capital inflows.

According to the ministry, since the start of WGBI inclusion, foreign net purchases of KTBs reached 37.3 trillion won on a contract basis (from March 30 to June 26) and 30.7 trillion won on a settlement basis (from April 1 to June 26).

Despite increased volatility in KTB yields due to persistent external uncertainties and shifts in the monetary policy stances of major economies, foreign net purchases continued from April to June following the start of WGBI inclusion, exceeding the figure from the same period last year (28 trillion won on a settlement basis).

The ministry explained that June was particularly notable, as net investment from various types of investors—including central banks, investment banks, and international organizations—remained steady, alongside continued inflows of Japanese capital, even despite large-scale KTB maturity redemptions (-7.9 trillion won).

During the meeting, participants shared difficulties and suggestions raised by foreign investors following the launch of Euroclear services and discussed plans for relevant institutional improvements.

Director General Hwang stated, "As internal and external uncertainties surrounding the domestic financial market persist, we must remain vigilant and closely monitor foreign capital inflow trends throughout the second half of the year."
※ Please note: This article was translated by AI and may contain errors.