Korea Triples Overseas Bond Cap as US Deal Spurs Dollar Demand

South Korea has more than tripled its annual cap on foreign exchange stabilization bond issuance from its original plans, as authorities prepare to deal with a surge in dollar demand stemming from a trade deal with the US.

For 2026, the cap was raised to $5 billion under the annual budget plan approved by parliament late Tuesday, compared with the government’s earlier proposal of $1.4 billion. The cap for 2025 had been set at $3.5 billion.