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About KTBs

Currently issued government bonds include KTBs, National Housing Bonds (NHBs) Type 1, and Foreign Exchange Equalization Fund Bonds, which are denominated in a foreign currency.

As of 2017

  • total : Issuance Volume(124.2 trillion won)
  • 1. KIBS 100.8 trillion won 81.2%
  • 2. NHBs 14.3 trillion won 11.5%
  • 3. Treasury Bills7.9 trillion won 6.4%
  • 4. KIBS 1.2 trillion won 0.9%

As of 2017, Outstanding balance of treasury bills : 0

  • total : Outstanding balance(623.3 trillion won)
  • 1. KIBS 546.7 trillion won 87.7%
  • 2. NHBs 69.4 trillion won 11.1%
  • 3. KIBS 7.2 trillion won 1.2%

Among these government bonds, KTBs are issued in the largest volume and trading is active. Accordingly, the on-the-run KTB market yields serve as a benchmark yield. These are currently six types of KTBs issued, according to maturity; 3-year, 5-year, 10-year, 20-year, 30-year, and 50-year KTBs. These KTBs fall into fixed-interest type bonds and inflation-linked KTBs (limited to the 10-year maturity, KTBis). KTBi links the principal and coupon rate of the KTB to a consumer price index.

A table composed of No. Annual new issuances, New issuance months, Fungible issue period
No. Annual new issuances New issuance months Fungible issue period
3-year Twice a year Jun, Dec 6 months
5-year Twice a year Mar, Sep 6 months
10-year Twice a year Jun, Dec 6 months
20-year Once a year Sep 1 year
30-year Once a year Mar 1 year

KTBs are fungible issues, meaning that the issuing conditions, including maturity and coupon rate, are the same for bonds issued within a certain period of time. Currently, 3-year KTBs and 10-year KTBs are issued on 10 June and 10 December each year, 5-year KTBs are issued on 10 March and 10 September, 20-year KTBs are issued on 10 September, and 30-year KTBs are issued on 10 March. The coupon rates of KTBs are set to multiple of 0.125%.