South Korea issues €1.7 billion FX stabilization bonds to bolster reserves

Seoul taps euro-denominated debt markets to reinforce its foreign exchange buffer, following a rise in reserves to $427 billion in June.

By Handelsavisen Newsroom · Automated 2026-07-09 02:06 UTC · 1 min read

South Korea has issued €1.7 billion ($1.94 billion) in euro-denominated foreign exchange stabilization bonds, the finance ministry confirmed Thursday.

The issuance underscores the government’s ongoing strategy to diversify funding sources and maintain ample liquidity buffers amid global market volatility.

Earlier this week, the finance ministry announced plans to issue 160 billion won ($104 million) in government bonds targeted specifically at individual investors next month.

The move comes as South Korea’s foreign exchange reserves strengthened in June, reaching $427.36 billion, according to data from the Bank of Korea.

The increase occurred despite authorities implementing measures to manage exchange rate fluctuations, signaling underlying resilience in the country’s external position.

This issuance complements other recent debt management activities by Seoul.

Earlier this week, the finance ministry announced plans to issue 160 billion won ($104 million) in government bonds targeted specifically at individual investors next month.