Treasury Bond Issuance Plan, June 2023

The Ministry of Economy and Finance plans to issue Korea Treasury Bonds worth approximately 15,000 billion won in June 2023 through competitive bidding.

Auction Schedule, June 2023

(Unit: KRW billion)

* Under a fungible issue system, new KTBs issued within a specified period (three-month period for 2Y KTB, six-month period for 3Y, 5Y and 10Y KTB, one-year period for 20Y and 30Y KTB, and two-year period for KTBi and 50Y KTB) are regarded as the same KTB issue.

1) Non-competitive bids option I

For retail investors, KTBs worth 2,800 billion won (no more than 20% of the offered amount in the auction excluding 50Y KTBs) will be allocated first at the highest accepted bid rate.

2) Non-competitive bids option II

A non-competitive purchasing option II is granted to primary dealers (PD) whereby PDs can make additional purchases of 10-35%^* of the accepted bid amount within three business days after the auction.

* Up to 25% of the option is granted to the top-performing PDs, 20% to the 2^nd best-performing PDs, 15% to the 3^rd best-performing PDs, and 10% to the rest, according to their market-making performances for the last six months. MOEF will grant additional 5-10%p to best performing PDs in the monthly evaluation.

3) Non-competitive bids option III

KTB STRIPS^* are supplied on the third business day after the auctions, 221 billion won for 3Y and 5Y KTBs, 271 billion won for 10Y and 30Y KTBs, and 170 billion won for 20Y KTBs. PDs that have obtained the right to purchase these KTB STRIPS can make purchases of up to 20 billion won.

* Purchases are made in a stripped bond type, and the PDs have to meet their obligations of separating interest and principal for their purchases over the next month.

＊Non-competitive option Ⅵ

Details have yet to be decided. If non-competitive option Ⅵ needs to be implemented, the Ministry

will make an announcement on June 15 with a detailed plan.

4) Conversion offer