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SEOUL, Oct. 4 (Yonhap) -- South Korea's chief economic policymaker said Thursday that the government will establish a market for long-dated Treasurys in order to meet rising fiscal spending.
"In order to secure stable funding for fiscal spending, the government will make efforts to set up a solid long-dated Treasury market," Finance Minister Kim Dong-yeon said in a speech at the Global Conference on Korea Treasury Bonds hosted by Yonhap Infomax, the financial information service arm of Yonhap News Agency.
"The government will also seek ways to supply stable offerings of 50-year Treasurys to meet rising demand," he said.
The country's finance ministry issued its first 50-year state bonds, the nation's longest maturity bonds, in October, 2016.
Last month, it sold 660 billion won ($585 million) worth of 50-year Treasury bonds.
The ministry sold 325 billion won worth of 50-year Treasurys in March and 540 billion won in June this year.
The finance ministry has been reviewing a plan to additionally sell the country's longest-dated state bonds to meet demand from large scale investors.
Kim said the government will try to better communicate with market players and beef up the monitoring of foreign investment into local bonds.
The minister said the Seoul government will continue consultations with U.S. currency authorities as part of efforts to avoid designation as a "currency speculator."
"I think Washington will not designate us as a currency speculator," Kim said. "But the government will continue close consultations (with the U.S. authorities) without lowering our guard."
In April, Washington kept South Korea on its "monitoring list" but did not designate it as a currency manipulator.
Washington has vowed to aggressively keep tabs on and combat unfair currency practices, saying the United States cannot and will not bear the burden of an international trading system that, it claims, unfairly disadvantages American exports and gives an edge to its trading partners.
South Korea said earlier this year that it will reveal its records on currency market intervention biannually for one year and then switch to quarterly disclosures as part of efforts to minimize any negative impact on the market.
South Korea's financial authorities have persistently claimed they do not interfere in the foreign exchange market but engage in "smoothing operations" against extreme one-sided movements.
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