Press Release

MINISTRY OF STRATEGY AND FINANCE

Embargo: 17:00, February 28, 2011 Release Date: 16:00, February 28, 2011

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

2011 MARCH T

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The Ministry of Strategy and Finance plans to issue Korea Treasury Bonds worth 6,100 billion Won in March 2011 through competitive bidding.

1) KTBs of 6,100 billion Won will be issued through competitivebidding.

3-year KTB worth 1,400 billion Won scheduled to be issued on March 8(Tue)will be fungible with "KTB0300-1312."

5-year KTB worth 2,200 billion Won scheduled to be issued on March 15(Tue)will be newly issued in “KTB****-1603.”

10-year KTB worth 1,600 billion Won scheduled to be issued on March 22(Tue)will be fungible with "KTB0500-2006."

20-year KTB worth 900 billion Won scheduled to be issued on March29 (Tue)will be fungible with "KTB0475-3012."

- 2011 March 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 3-7-2011 3-8-2011 12-10-2010 1,400

Nominal 3-14-2011 3-15-2011 3-10-2011 2,200

Nominal 3-21-2011 3-22-2011 6-10-2010 1,600

Nominal 3-28-2011 3-29-2011 12-10-2010 900

Press Release

MINISTRY OF STRATEGY AND FINANCE

2)Non-competitive purchasing option F/

For individual investors participating in competitive bidding, 1,220 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 inMarch

– 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 March 2011.

For details, refer to Appendix.

* Appendix: 2011 March KTB Conversion Offer Plan

MINISTRY OF STRATEGY AND FINANCE Appendix ’2011 March 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 March. 17, 2011 (Thr).

● Conversion offer date and time

10:4011:00, March. 17, 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 0425-1409(10 year)

● Delivery and settlement date : 15:50, March 21, 2011 (Mon)

Details will be announced on the website of the Bank of Korea on March 14.