South Korea begins to be included in the global government bond index, with nearly $3 billion in foreign investment entering in the first three days of this week.

MaticHoleFiller · 2026-04-10T11:03:10+00:00

The Korean financial authorities announced that this week, over 44 trillion won of foreign funds flowed into the bond market, as Korea began to be included in the FTSE Russell Global Government Bond Index, which is expected to stabilize the bond and foreign exchange markets. Japanese investors are the main buyers, and the government will closely monitor the capital inflows.

MaticHoleFiller

2026-04-10 11:03:10

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South Korean financial authorities said on Thursday that this week, more than 4.4 trillion won ($2.9 billion) in foreign funds have flowed into South Korea’s bond market, after South Korea began phasing in the key global government bond index managed by FTSE Russell.

On Wednesday, South Korea officially began inclusion in the World Government Bond Index (WGBI), for a period of eight months. South Korean authorities believe this step will help stabilize the bond and foreign exchange markets.

The authorities said that from Monday to Wednesday, foreign investors purchased South Korean government bonds worth 4.4 trillion won, with Japanese investors contributing the most.

South Korean Finance Minister Koo Joon-hyeok said, “The government will closely monitor capital inflows through a joint task force formed by relevant departments.”

According to South Korea’s Ministry of Economy and Finance, Koo Joon-hyeok made the above remarks at a macroeconomic policy meeting. Bank of Korea Governor Lee Chang-yong, as well as leaders of the Financial Services Commission and the Financial Supervisory Service, also attended the meeting.

The authorities said that although uncertainty has increased as tensions in the Middle East have escalated, volatility in the government bond market has started to ease after an emergency repurchase of 5 trillion won in bonds.

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Editor: Yu Jian SF069

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