Korea Ministry of Economy and Finance / Newsis

The Korean government said Friday that it has begun preparations to issue bonds denominated in Australian dollars for the first time, aiming to attract fresh investment from global markets.

The Ministry of Economy and Finance said it has selected three financial institutions — ANZ Bank, Mizuho Bank and Nomura Holdings — to manage the issuance of Aussie dollar bonds with a maximum cap of $300 million.

The ministry noted the recent decision by FTSE Russell to add Korean bonds to its key World Government Bond Index from November 2025 has created an "ideal opportunity" to bring in new investors by issuing bonds in new overseas markets.

"We are aiming to attract new investors from regions like Australia, Canada and the Middle East," Yoo Chang-yeon, a senior finance ministry official, said.

Yoo highlighted that Australia, considered an advanced financial market, has one of the largest pension funds globally and major asset managers, such as Macquarie Group.

The ministry anticipates a strong market response, bolstered by demand from Australia's rapidly growing pension industry, valued at approximately 4 trillion Australian dollars ($2.66 trillion).

The ministry also anticipates to increase foreign investment in Korean bonds traded on international platform Euroclear.

Yoo mentioned that a team from the finance ministry will soon visit Australia to conduct in-person investor roadshows. (Yonhap)