1.6 trillion won bond redemption planned

The government has revealed its plan for an early redemption before maturity of 1.6 trillion won worth of government bonds issued to reduce the government's debt.

"With the 1999 tax surplus, we will buy back some of the government bonds before their maturity," the Ministry of Finance and Economy said Thursday.

Although the government has earmarked 1.6 trillion won of the tax surplus, 800 billion won (used in the fall) less than the original surplus of 2.4 trillion won, the actual redemption might be less than the 1.6 trillion won should the market lack sufficient sell orders.

The bonds that the government plans to buy back are those issued to reduce government debt and with short maturity dates and high interest obligations.