South Korea’s finance ministry announced its plans to sell off 13 trillion won (US$11 billion) in government bonds in January.
According to the Ministry of Economy and Finance –
• In Treasurys with a two-year maturity will issue 900 billion won,
• Bonds that have a maturity of three years will issue 2.5 trillion won,
• For five-year government bonds 2.5 trillion won,
• Bonds with a maturity of 10 years will issue 2.6 trillion won.
It also mentioned that the sales of state debts with a maturity of 50 years will be include 400 billion won and longer-dated bonds in 30-year Treasury notes will include 3.3 trillion won.
The ministry last week had announced that in 2022 it will lower the ratio of short-term bonds to 25 percent from 30 percent. While it will also raise the portion of bonds with a maturity of 20 years and longer to 35 percent from previous 30 percent.
In the meantime, the country has issued 5.8 trillion won in state bonds in December.
The country’s ruling party mentioned that the government on the side in order to stabilize the market price of the staple grain will buy 200,000 tons of locally produced rice this year, following a meeting with agriculture authorities.
According to chief policy maker of the ruling Democratic Party (DP), Rep. Park Wan-joo, of the surplus amount of 270,000 tons of rice, the government will isolate 200,000 tons from the market in the near future.
He also added that the government to determine whether and when it should buy the remaining surplus will monitor market situations and rice reserves amount of 70,000 tons of rice.
The move by the government comes after this year’s rice production reached 3.88 million tons, resulting in a surplus of 270,000 tons, up 10.7 percent from a year earlier.
According to the authorities, due to the oversupply, rice prices have dropped sharply and dragged down the income of farmers. As of Saturday, the average price for a 20 kilogram sack of rice stood at 51,254 won (US$43).
The government, under the country’s grain management law can segregate rice from the market, if in surplus, and its harvested amount is 3 percent larger than the expected demand or also if its prices fall 5 percent or more compared to last year.