South Korea to be included in the World Government Bond Index..."75 trillion foreign capital inflow"

[Anchor]
Government bonds, bonds issued by the Korean government, have been incorporated into the "World Government Bond Index," one of the world's top three bond indices.

As Korean government bonds are incorporated into the so-called developed country government bond club, foreign investment funds worth 75 trillion won are expected to flow into the country.

I'll connect you with reporters for more information. Reporter Park Kiwan!

What are the benefits of our government bonds being incorporated into the 'World Government Bond Index'?

[Reporter]
Government bonds refer to bonds issued by our government to secure funds.

This government bond is issued not only to domestic but also to foreign investors.

If our government bonds are included in the "World Government Bond Index," foreign investment can become more active as foreign credibility increases.

As our government bonds were incorporated into the "World Government Bond Index," they were incorporated into two of the three major bond indices that investors around the world are paying attention to.The decision to incorporate

into the global government bond index is the FTSE, or the British Financial Times Stock Exchange Russell.

After a one-year grace period, Russell decided to incorporate South Korean government bonds into the "World Government Bond Index" from November next year.

In the global government bond market, all funds that follow the 'World Government Bond Index' are estimated to be $2.5 trillion.

Among them, 2.22% of Korean government bonds were incorporated.

In terms of conversion, at least $56 billion and 75 trillion won of our money are expected to be invested in government bonds and flow into Korea.

Above all, it is expected to be of great help to the stability of exchange rates and interest rates.

There is also an analysis by the Korea Financial Research Institute that if foreign investment funds flow into Korea, it will have an effect of lowering interest rates by 0.2 to 0.6%.

On top of that, it is expected that financial management will stabilize as it will be easier to raise capital through government bonds.

Let's hear from Deputy Prime Minister for Economy Choi Sang-mok.

[Choi Sang-mok / Deputy Prime Minister for Economy and Minister of Strategy and Finance: Interest rates are expected to stabilize and reduce financing costs for the people and businesses. Second, the inflow of large-scale follow-up funds will expand the foundation of the government bond market, enabling stable mid- to long-term fiscal management.]

Deputy Prime Minister Choi stressed that the Korean capital market has not been properly evaluated, especially in light of the size of the economy and national credit rating, which is the world's 10th largest, and that the inclusion of the global government bond index has resolved the Korea discount and succeeded in getting a good price in name and reality.

Another thing to note this time is that Korea has avoided designating an observation target country.FTSE Russell, which decides to include

in the 'World Debt Index', has been considering designating the country to be observed, taking issue with the ban on short selling in our stock market.

If our stock market, which is classified as an advanced market, is designated as an observation target country, it could be a bad news for foreign investors.

FTSE Russell is said to be in a position to watch more in consideration of the fact that the Korean government has announced the schedule for the resumption of short selling at the end of March next year.

So far, I'm Park Ki-wan of YTN in the Ministry of Economy.