South Korea's Ministry of Economy & Finance convened the third meeting of the WGBI monitoring and investment attraction taskforce, reviewing capital inflow trends around the start of South Korea’s inclusion in the World Government Bond Index (WGBI). The authorities reported sustained foreign inflows into Korean Treasury bonds and pointed to accompanying declines in benchmark yields. Since WGBI inclusion began, foreign investors recorded net purchases of KRW 7.7 trillion on a trade-date basis for 30 March to 13 April, and KRW 5.4 trillion on a settlement basis for 1 April to 13 April, with the trade versus settlement difference reflecting bond settlement lags of up to 30 days. Net buying by Japan-based investors, previously a more limited source of demand for Korean Treasury bonds, reached KRW 2.8 trillion on a settlement basis, alongside continued inflows from existing investor types such as central banks and international organisations. Over 30 March to 14 April, yields fell by 20.3 basis points for the three-year tenor and 23.3 basis points for the 10-year tenor. The government said it will continue to monitor inflows through the taskforce and address operational issues raised by market participants. As part of investor outreach, the Treasury Policy Director will hold investor relations meetings in Tokyo on 16 to 17 April with major Japan-based investors to review post-inclusion investment trends and gather feedback.
Ministry of Economy & Finance (South Korea) 2026-04-15
South Korea's Ministry of Economy & Finance reports KRW 7.7tn foreign net buying of Treasury bonds since WGBI inclusion led by Japan-based investors
The Ministry of Economy and Finance of South Korea reported sustained foreign inflows into Korean Treasury bonds and declines in benchmark yields following South Korea’s inclusion in the World Government Bond Index. Foreign investors recorded net purchases of KRW 7.7 trillion between 30 March and 13 April, including KRW 2.8 trillion by Japan-based investors, while three- and ten-year bond yields fell about 20–23 basis points. The government will keep monitoring inflows through its taskforce and hold investor relations meetings in Tokyo with major Japan-based investors.