Press Release

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MINISTRY OF STRATEGY AND FINANCE

Embargo: 17:00, December 30, 2010 Release Date: 16:00, December 30, 2010

Contact Information: SangHyun Kwak : 02-2150-5132 (Government Bond Policy Division)

2011 JANUARY T

REASURY

B

OND

I

SSUANCE

, C

ONVERSION

O

FFER

S

CHEDULE

& DECEMBER A

UCTION

R

ESULT

The Ministry of Strategy and Finance plans to issue Korea Treasury Bonds worth 6,063 billion Won in January 2011 through competitive bidding.

1) KTBs of 6,063 billion Won will be issued through competitivebidding.

3-year KTB worth 1,500 billion Won scheduled to be issued on January 4(Tue)will be fungible with "KTB0300-1312."

20-year KTB worth 970 billion Won scheduled to be issued on January25 (Tue)will be fungible with "KTB0475-3012."

- 2011 January Auction Schedule -

(Unit: billion Won)

Classifi- cation

Auction

Date

Settlement

Date

Issue

Date

Amount of Issue 3-

year KTB

5- year KTB

10- year KTB

20- year KTB Nominal 1-3-2011 1-4-2011 12-10-2010 1,500

Nominal 1-10-2011 1-11-2011 9-10-2010 2,023

Nominal 1-17-2011 1-18-2011 6-10-2010 1,570

Nominal 1-24-2011 1-25-2011 12-10-2010 970

Press Release

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MINISTRY OF STRATEGY AND FINANCE

2)Non-competitive purchasing option F/

For individual investors participating in competitive bidding, 1,213 billion Won KTBs, not more than 20% of the offering amount in the auction, will be allocated first at the accepted bid rate

3) Non-competitive purchasing option II

A non-competitive purchasing option II is granted to primary dealers (PD) whereby PDs can purchase 10% of the accepted bid amount (up to 25% for top five PDs and 15% for the next top five PDs)and then 3 additional business days is given to PDs for purchase the day after the auction is closed.

- A PD’s exercise rate for non-competitive purchasing option II is the highest accepted bid rate determined by the multi-price auction method.

4) Inflation-linked Korea Treasury Bond (KTBi) Issuance

PDs are granted the right to purchase KTBi up to 20% of the accepted amount of 10-year KTB within 4 business days including the auction day.

- The issue rate of KTBi is calculated by subtracting spread announced by the Korea Exchange right after 10-year KTB auction from the highest accepted rate of 10-year KTB.

* Financial Support: A fund of approximately 1 trillion Won will be offered inJanuaryr

– The fund will be provided at low interest rates if PDs present their holding KTBs as collateral.

5) conversion offer plan

MOSF will conduct a conversion offer for KTBs of 500 billion Won in January 2011. For details, refer to Appendix 1.

* Appendix 1: 2011 January KTB Conversion Offer Plan Appendix 2: 2011 December Treasury Bond Auction Result

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MINISTRY OF STRATEGY AND FINANCE Appendix 1 ’2010 January KTB Conversion Offer Plan

The Ministry of Strategy and Finance plans to conduct a conversion offer for Korea Treasury Bonds worth 500 billion Won on January. 13, 2011 (Thr).

● Conversion offer date and time

10:4011:00, January. 13, 2011 (Thr)

● Amount : 500 billion Won

● Types of KTB

KTB for issue KTB for purchase

KTB 0375-1306(3 year)

KTB 0525-1303 (5 year) KTB 0575-1309 (5 year) KTB 0475-1309 (10 year) KTB 0475-1403 ( 5 year) KTB 0525-1403 (10 year)

● Delivery and settlement date : 15:50, January 17, 2011 (Mon)

Details will be announced on the website of the Bank of Korea on January 10.

(Anticipatory effect) Off-the-run KTBs of low liquidity are exchanged for newly- issued KTBs of high liquidity, which will lead to facilitating the trading of government bonds.

* Non-benchmark KTBs are rarely traded in the market and therefore have very low liquidity. In contrast, newly-issued KTBs are traded actively as a benchmark bond that sets investment criteria.

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MINISTRY OF STRATEGY AND FINANCE

Appendix 2 ’ 2010 December Korea Treasury Bond Auction Result

Korea Treasury Bonds worth 2,836billion Won were issued in December 2010.

< 2010 December Nominal KTB Auction Result >

(unit: billion Won)

Classification

Competitive bidding

Non-competitive purchasing

option

Conversion offer (C)

Total (A+B+C) Auction

date

Issue (planned)

Issue Amt.

(weighted avg.

accepted rate,%)

(A)

Period

Issue amount

(B)

3 year KTB (KTB 0300-

1312)

’10.12.6 400 400

(3.04) - - 375 775

1509)

’10.12.13 861 861

(3.98) - - - 861

2006)

’10.12.20 800 800

(4.57) - - 800

3012)

’10.12.27 400 400

(4.70) - - 400

Total 2,461 2,461 - 375 2,836

< 2010 December KTBi Auction Result >

(unit: billion Won) Issue

period

Issue (planned)

Issue rate(%)

Issue amount

(A)

Conversion offer (B)

Total (A+B) 10 year KTBi

(KTBi0275- 2006)

- - - -