South Korea to issue 197.6 Trillion won in State Bonds in 2024

Seoul (The Uttam Hindu): South Korea ranked as the 11th-largest defence spender globally in 2023 investing $47.9 billion (approximately ₹4.0 lakh crore) to strengthen its military capabilities in response to growing threats from North Korea. This places the country just outside the top 10 defence budgets according to a report from the Korea Research Institute for Defence Technology Planning and Advancement. The United States led the global defence spending with $916 billion (about ₹76.6 lakh crore) followed by China at $296 billion (around ₹24.5 lakh crore) and Russia at $109 billion (approximately ₹9.0 lakh crore). South Korea's defence spending was significantly lower but still notable given its regional security concerns.

Additionally the report highlighted South Korea's position in the global arms export market where it holds a 2 percent share ranking 10th. The United States dominated with 42 percent of the market followed by France and Russia with 11 percent each and China at 5.8 percent. In a separate development South Korea's finance ministry announced plans to issue state bonds worth 197.6 trillion won (approximately ₹13.3 lakh crore) in 2024, a 39.2 trillion won increase compared to 2023. These bonds will be distributed throughout the year with a significant portion expected to be issued in the first half. This move is part of efforts to strengthen the local bond market especially as South Korea prepares for its inclusion in the World Government Bond Index (WGBI) in 2025. The government anticipates this could attract up to 80 trillion won (around ₹5.4 lakh crore) to the market.