The Ministry of Strategy and Finance plans to issue 110 trillion won of government bonds in 2016, up 800 billion won from this year in an attempt to boost the economy.
 
However, net treasury bond sales will fall five-point-eight trillion won from this year to 45-point-nine trillion won. Conversion issues due to maturity will increase two-point-three trillion won from this year to 53-point-nine trillion won.
 
The remaining ten-point-three trillion won, up four-point-three trillion won from this year, will be market-making volume to manage buybacks and exchanges more effectively.
 
The finance ministry said it expects ample demand for the bonds as pension funds, insurance firms and asset management companies have been increasing purchases. 
 
Kim Hee-cheon, a finance ministry official in charge of government bonds, said the ministry will seek to keep the market stable as volatility could expand depending on the speed of U.S. rate hikes and a slowdown in the Chinese economy.