The Korea Financial Services Commission said on Monday that it decided to extend the bond market stabilization plan until next year on the grounds that changes in domestic and foreign monetary policies and increased issuance of public bonds pose risks. The committee statement said that its 37.6 trillion won bond and short-term money market stabilization fund and 60.9 trillion won real estate project financing support plan will be extended until 2026. The FSC also said that in view of the heightened cautious sentiment in the domestic financial market, rising bond yields and increasing exchange rate fluctuations, it will adopt measures to stabilize the market in advance if necessary. As the depreciation of the Korean won reduced the room for further policy relaxation, the Bank of Korea kept interest rates unchanged for the fourth time in a row during the policy meeting last month, indicating that the interest rate cut cycle may be nearing its end.

The Korea Financial Services Commission said on Monday that it decided to extend the bond market stabilization plan until next year on the grounds that changes in domestic and foreign monetary policies and increased issuance of public bonds pose risks. The committee statement said that its 37.6 trillion won bond and short-term money market stabilization fund and 60.9 trillion won real estate project financing support plan will be extended until 2026. The FSC also said that in view of the heightened cautious sentiment in the domestic financial market, rising bond yields and increasing exchange rate fluctuations, it will adopt measures to stabilize the market in advance if necessary. As the depreciation of the Korean won reduced the room for further policy relaxation, the Bank of Korea kept interest rates unchanged for the fourth time in a row during the policy meeting last month, indicating that the interest rate cut cycle may be nearing its end.