Bonds

Korea Mulls Doubling FX Bonds for Interventions to $3.5 Billion

Volatility in the won spiked to its highest since the US presidential election in November. 

Photographer: SeongJoon Cho/Bloomberg
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South Korea plans to more than double the amount of overseas bonds it can issue to fund currency market activity to $3.5 billion, with officials citing the need to respond to sharp fluctuations.

The revised issuance ceiling is part of a 12.2 trillion won additional budget aimed at supporting the flagging export-oriented economy now faced with US tariffs. The Finance Ministry made the proposal on Friday, which must be approved by parliament.