[On-Site Video+] S. Korean Government Bond Succeeds in Incorporating 'World Government Bond Index'...What's the advantage?

[Anchor]
Government bonds issued by the Korean government will be incorporated into the World Government Bond Index, one of the world's three largest government bond indices, from November next year.

If our country is incorporated into the 'World Government Bond Index', it is expected that a large number of foreign investment capital will flow into the country.

In this regard, Deputy Prime Minister for Economic Affairs Choi Sang-mok personally explained.

I'll connect you to the briefing site.

[Choi Sang-mok / Minister of Strategy and Finance]
How are you? I'm the deputy prime minister.

As you know, there were reports that Korea would be incorporated into the World Government Bond Index, WGBI at 5 o'clock this morning.

I'm here to briefly explain the meaning, background, and expected effect of WGBI transfer.

The incorporation of the World Government Bond Index can be seen as a success for the Korean government bond market to receive its price in name and reality.

South Korea is the 26th country to be included in the WGBI, a very demanding club of advanced countries that even some financially advanced countries have difficulty crossing the threshold.

It was an opportunity to confirm investors' confidence around the world in our economy, which maintains its highest credit rating ever even when conditions are not favorable due to geopolitical risks such as the Middle East, Russia, and Ukraine after the pandemic and concerns about an economic slowdown in major countries.

In addition, I think this decision was made possible by the solid fundamentals of the Korean economy and high international credibility under the sound fiscal stance of the Yoon Suk Yeol government.

In addition, since the inauguration of the current government, it has been recognized for promoting consistent foreign exchange and capital market reforms in accordance with global standards under the free market economy.

Until now, our capital market has not been properly evaluated compared to the world's top 10 economies and national credit ratings.Ma took this opportunity to adjust the evaluation of our bond market to match the economic weight.

Since the government's inclusion of WGBI and improvement of the foreign exchange market structure have resolved chronic bonds and Korea Discount in the foreign exchange market, we will now continue to push for corporate value-up support measures to get the right price in the Korean stock market and do our best to ensure that the results lead to the real economy.

With the inclusion of WGBI, more than 75 trillion won of foreign investment is expected to flow into the domestic market from the second half of next year, and the benefits will go to the people and companies above all else. I can tell you three things.

First of all, interest rates are expected to stabilize, reducing financing costs for the people and companies.

Second, the inflow of large-scale followings will expand the foundation of the government bond market, enabling stable mid- to long-term fiscal management.

Third, the inflow of foreign funds is expected to contribute to the stability of the foreign exchange market. In the future, we will continue to communicate with global investors and make more efforts to ensure that our government bonds settle stably in the global financial market.

In addition, we will constantly monitor market conditions and thoroughly manage possible risk factors in preparation for volatility in the global financial market.

Thank you.