South Korea plans to issue a record amount of government bonds in 2026 for budget financing.

Jin10 data reported on August 29 that South Korean officials stated that South Korea will issue a record 232 trillion won in bonds by 2026 to fund President Lee Jae-myung's expansionary fiscal agenda, with government spending expected to rise by 8.1% compared to this year. Of this, 115.7 trillion won will be net new bond issuance. The government originally planned to issue 201.3 trillion won in government bonds this year, but after two supplementary budgets, the scale of bond issuance has increased to 231.1 trillion won. In addition to government bonds, South Korea will also seek parliamentary approval to issue 1.4 billion dollars in offshore bonds and 13.7 trillion won in domestic currency-denominated forex stabilization bonds by 2026. The scale of government bond data generally meets strategists' expectations. Previously, iM Securities predicted the issuance scale to be around 233 trillion won, while Citigroup's prediction was around 220 trillion won.