The government will issue 1.37 trillion won in won-denominated Foreign Exchange Equalization Fund bonds (FX stabilization bonds) next year. The size is the same as this year, and all proceeds will be used to repay this year's FX stabilization bonds.
The Ministry of Economy and Finance said on the 26th that it finalized this plan to issue FX stabilization bonds in 2026. Won-denominated FX stabilization bonds are issued to secure won resources for the Foreign Exchange Equalization Fund, which consists of dollar and won funds.
The Ministry of Economy and Finance (MOEF) plans to split monthly issuance of won-denominated FX stabilization bonds as evenly as possible to improve market predictability. However, the specific size will be adjusted each month based on market conditions. It also plans to coordinate timing with the Bank of Korea (BOK) so as not to overlap with BOK monetary stabilization bonds (one-year).
The Ministry of Economy and Finance (MOEF) also said it plans to issue 55%–60% of won-denominated FX stabilization bonds in the first half. The measure takes into account year-end funding market tightening and inclusion in the WGBI in April next year.
Maturities and bidding methods will remain the same as this year. The entire won-denominated FX stabilization bond issuance will be in one-year maturities and conducted through competitive bidding on the third Friday of each month.
To activate transactions in won-denominated FX stabilization bonds, the government plans to institutionalize early redemption. It will be carried out on the Friday of the second week at the end of each quarter, at about 5% of annual issuance (70 billion won). The targets are two to three issues with 4–6 months of remaining maturity.
An official at the Ministry of Economy and Finance (MOEF) said it plans to continue monitoring and consultations with the market so that the won-denominated FX stabilization bonds, reissued this year for the first time in 22 years, can take root stably in the market.