South Korea’s surplus national tax revenue of 63.2 trillion won has prompted expectations that the government will reduce this year’s treasury bond issuance. Analysts estimate cuts of 10 trillion to 13 trillion won over the remaining three months, while a securities-firm bond official said reducing the share of maturities of five years or longer could further support the market. Treasury bond issuance from January through September totaled 179.7 trillion won, or 79.6% of the 225.7 trillion-won annual plan, below both the five-year and three-year average completion rates. The government can use surplus revenue through a supplementary budget, debt reduction or redemption, with other allocations governed by the National Finance Act. If a proposed future response fund is approved, the money could instead flow directly into that fund. Reduced issuance could ease supply-driven upward pressure on yields, and the government is also considering an emergency buyback in which repurchased bonds would not be reissued, lowering annual supply. Three- and 10-year yields fell after the issuance reduction became known. Officials and analysts said the measures could help address weak issuance conditions for bank debentures and public corporate bonds while demonstrating fiscal capacity amid unsettled global rates.