South Korea's new president, Lee Jae-myung, intends to greatly expand fiscal policy. Concerns are rising that South Korea's national debt may trigger a new round of sell-offs.

According to the Wise Finance APP, with increasing concerns from investors about the left-leaning stance of new South Korean President Lee Jae-myung, who will usher in an era of fiscal expansion accompanied by rising government debt, South Korean government bonds are facing a more difficult situation. After Lee Jae-myung won the South Korean presidential election and ended months of political uncertainty, the yield on the 10-year South Korean government bonds skyrocketed by more than 10 basis points on Wednesday, reaching 2.90%. In the 30-year government bond auction held on the same day, the bid-to-cover ratio dropped to the lowest level since April 2022, reflecting investors' concerns about increased debt supply.