Deputy Prime Minister and Minister of Finance and Economy Koo Yun Cheol on April 1 speaks at a macroeconomy, fiscal and monetary meeting at Government Complex-Seoul in the capital's Jongno-gu District. (Ministry of Finance and Economy)

By Yoo Yeon Gyeong

Deputy Prime Minister and Minister of Finance and Economy Koo Yun Cheol on April 1 announced the inclusion of domestic government bonds in the World Government Bond Index (WGBI).

On his X account, he said, "This is expected to help stabilize our foreign exchange and financial markets, whose volatility has greatly worsened due to the war in the Middle East."

Calling the WGBI "a bond index published by FTSE (Financial Times Stock Exchange) Russell, a subsidiary of the London Stock Exchange," he added, "This is the world's largest government bond index with bonds from 25 major countries including the U.S., Germany, China and Japan and index-tracking funds worth USD 2.5 trillion to USD 3 trillion.”

"Foreign financial institutions and dealers specializing in government bonds expect new capital inflow worth USD 50 billion-USD 60 billion following our inclusion in the WGBI, and the fund inflow was confirmed this week."

Minister Koo said he would run a joint task force on regularly monitoring the index and attracting investment through November, when inclusion is complete, with his ministry, the Financial Services Commission, Bank of Korea, Financial Supervisory Service and Korea Securities Depository.

dusrud21@korea.kr