South Korea plans to issue up to 222.8 trillion won ($162.7 billion) of bonds in 2027, a total near this year’s record, as President Lee Jae Myung pushes his expansionary fiscal agenda.

Of the total, 110.7 trillion won would be used for repaying maturing debt, while 15.9 trillion won is earmarked for market-making operations such as buybacks, according to four government officials from the Ministry of Finance and Economy and Ministry of Planning and Budget, who asked not to be identified discussing internal policy.

The announcement follows President Lee Jae Myung’s push for an expansionary fiscal agenda aimed at stimulating economic growth through increased government spending and bond issuance. This strategy marks a significant shift from previous austerity measures and reflects growing confidence in domestic fiscal sustainability despite global economic headwinds.

The bond issuance represents a substantial increase from previous years and underscores the government's commitment to funding both debt obligations and strategic market interventions to support financial stability and private sector activity.