[South Korea’s planned bond issuance in 2027 is close to a record level to raise funds for the government’s expansionary fiscal agenda] September 1st, as South Korean President Lee Jae-myung promotes an expansionary fiscal agenda, South Korea plans to issue a near-record level of 222.8 trillion won (US$162.7 billion) in bonds in 2027. According to four unnamed officials with knowledge of South Korea's Ministry of Planning and Finance and the Ministry of Planning and Budget, of the above funds, 110.7 trillion won will be used to repay maturing debts, and 15.9 trillion won will be used for market-making operations, such as repurchases. The officials spoke on the condition of anonymity discussing internal policy. This will bring net issuance to approximately 96.3 trillion won. The issuance total was disclosed in the 2027 budget proposals released by the two departments on Tuesday. The size of the 2027 issuance is comparable to this year’s record 232 trillion won proposal. However, South Korea's latest budget requires government spending to increase by 12.8% to 820.9 trillion won next year. Much of the record spending will be financed through new debt issuance, and the borrowing is likely to heighten concerns about government spending and push yields higher.