BondsMedium•5 November 2026•
1 min read
South Korea Weighs Multi-Billion Dollar US Treasury Purchases to Ease Trade Pressure
Key Facts
1The South Korean government and the Bank of Korea are considering large-scale purchases of long-term US Treasuries to expand foreign-exchange reserves.
2The plan aims to secure annual interest income exceeding 5% and strengthen the economic alliance with Washington ahead of tariff negotiations.
The South Korean government and the Bank of Korea are considering large-scale purchases of long-term US Treasuries to expand foreign-exchange reserves. bloomingbit reported that the plan aims to secure annual interest income exceeding 5% while strengthening the economic alliance with Washington ahead of tariff negotiations.
This strategy follows data showing South Korea's annual inflation rate at 2.8% on November 2, 2026, and a US trade deficit of $105 billion reported on November 4, 2026. Policymakers in Seoul intend to use these substantial debt purchases to build a buffer against potential trade pressures from President Donald Trump's administration, while capitalizing on high US yields.