South Korea will reduce October Treasury bond issuance by 5 trillion won ($3.64 billion) from its original plan, using excess tax revenue generated by a semiconductor boom to cover fiscal projects that had been financed through debt sales. Finance Minister Lee Hyoung-il said the move aims to ease pressure from sharply rising sovereign yields and that the government would consider further reductions if needed. Officials could also deploy emergency bond buybacks and other stabilization measures while monitoring market conditions with related agencies. Analysts expect lower issuance through year-end, with Hana Securities estimating a total cut of about 13 trillion won from the existing plan and Meritz Securities projecting reductions exceeding 10 trillion won. The 2026 annual issuance ceiling is 225.7 trillion won, of which 178.8 trillion won had been issued through September. Lee said rising yields and wider credit spreads could increase refinancing pressure on lower-rated companies if high interest rates persist. He also cited continuing home-price gains outside Gangnam and said the government would soon announce measures to ease regulations related to internationalizing the Korean won.