Korea Government Bond Rates

Live 3, 5, 10, 20, and 30-year Korea Treasury Bond yields with the term spread, a 24-month trend, and an instant bond-price widget.

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What are Korean government bond (KGB) rates?

Korea Treasury Bonds (KTBs), commonly called government bonds or KGBs, are debt securities issued by the Republic of Korea to fund public spending. Because the issuer is the sovereign government, they are treated as virtually risk-free, which is why KGB yields serve as the benchmark for almost every interest rate in Korea — bank loans, deposits, corporate bonds, and mortgages are typically priced as the government bond yield plus a spread.

The rates on this page are the yields to maturity (YTM) of KGBs traded in the secondary market, as published each business day by the Bank of Korea ECOS system. We show the 3-, 5-, 10-, 20-, and 30-year government bond yields, together with the AA- 3-year corporate bond and the 91-day CD rate, so you can read the credit spread and short-term rate at a glance.

The 10-year is the headline benchmark. It reflects long-term market rates and the outlook for growth and inflation. When the news says “government bond yields rose,” it usually refers to the 10-year. The 3-year, by contrast, is more sensitive to expected monetary policy (the base rate).

Three forces that move government bond yields

1. The base rate (monetary policy)

The Bank of Korea’s base rate has the most direct impact on short-term yields. When a hike is expected, the 3-year yield rises first; when a cut is expected, it falls first. That makes the 3-year a window into the market’s expected policy path.

2. Inflation

Bond coupons are mostly fixed, so rising prices erode real returns. When inflation expectations climb, investors demand higher yields, and long maturities such as the 10- and 30-year react the most. To see an inflation-adjusted, after-tax real yield, use the inflation-linked treasury bond (KTBi) calculator.

3. Supply and demand

Heavier bond issuance pushes yields up, while strong buying from foreigners, pension funds, and insurers pulls them down. Quarterly issuance plans and foreign holdings of Korean bonds are key swing factors.

Government bond vs. corporate bond vs. deposit

Even among “safe” options, credit risk and tax treatment differ. The table summarizes the key differences under Korean rules.

ItemGovernment bondCorporate (AA-)Time deposit
Credit riskVirtually none (sovereign)Depends on ratingProtected up to 50M KRW
Yield levelBenchmark (lowest)KGB + credit spreadVaries by bank
Selling earlyTradable in the marketTradable in the marketLoses interest if broken
TaxationCoupon taxed; capital gain tax-freeCoupon taxedInterest fully taxed at 15.4%

Because only the coupon is taxed and capital gains are tax-free, low-coupon discount bonds can be tax efficient. See the bond tax-saving calculator to quantify that, and check whether your financial income exceeds 20M KRW with the comprehensive financial income tax calculator.

Why do yields and bond prices move in opposite directions?

A bond’s coupon is fixed at issuance. When market yields rise, newly issued bonds pay more, so existing lower-coupon bonds become less attractive and their prices fall. When yields drop, the fixed coupon on existing bonds looks relatively generous and prices rise. This inverse relationship is the foundation of bond investing.

Price sensitivity depends on maturity. The longer the maturity (the higher the duration), the more the price swings for the same change in yield. Try changing the YTM in the mini widget above to see it, and use the bond yield calculator for precise duration and convexity.

What each maturity means, and the term spread

  • 3-year KGB — a short-term benchmark sensitive to expected base-rate moves.
  • 10-year KGB — the headline gauge of long-term rates and the growth/inflation outlook.
  • 30-year KGB — an ultra-long rate driven by insurers and pension funds.

The term spread is usually the 10-year yield minus the 3-year yield. In a normal expansion it is positive, but when recession fears grow, short rates can exceed long rates — an inversion (negative spread). Historically, an inverted curve has been read as a warning of slowing growth, so watch the “term spread” value at the top of this page.

Frequently asked questions

Q. What are today’s government bond rates?

The table at the top shows the latest business-day KGB 3/5/10/20/30-year yields from Bank of Korea ECOS. On weekends and holidays the previous business day is shown, so check the base date.

Q. How do the 3-year and 10-year differ?

The 3-year reflects base-rate expectations; the 10-year reflects the growth and inflation outlook. The gap between them (the term spread) hints at the direction of the economy.

Q. What does a term-spread inversion mean?

It is when the 10-year yield falls below the 3-year, typically when the market expects slower growth and rate cuts. It does not guarantee a recession but is worth noting as a risk signal.

Q. How are KGB rates related to loan rates?

Fixed-rate mortgages are largely priced off government and bank bond yields, so when KGB yields rise, loan rates tend to follow. To invest in government bonds directly, use the individual treasury bond calculator.

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