Concerns over a Government Bond Yield Convulsion (Pension Future Forum, February 6)

Today, the yield on the 10-year government bond posted 3.725%, a level that, standing 1.225 percentage points above the benchmark policy rate, closed higher.

The yield has broken successive 52-week highs.

This development, combined with the fact that foreign investors have sold more than 14 trillion won in the stock market over the past seven trading days, appears to be a very troubling sign.

Anyone who purchased government bonds since last October is already sitting on a loss exceeding 11%. This is the basis for the assessment that the situation has arrived at the threshold where a full-scale sell-off of government bonds by foreign investors may be imminent.

Now is the time to approach the situation with a sense of urgency and to make visible efforts to reverse the prevailing pessimistic assessments of Korea's medium- and long-term economic outlook.

This is precisely why populist policies appear to be dangerous.

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