The Ministry of Finance and Economy (MOFE) said Friday the government has issued 1 billion US dollars in foreign exchange stabilization bonds in New York.

The ministry said the bonds, which mature in 10 years, have a spread of 0.92 percent to the benchmark U.S. treasury bond, equivalent to a coupon rate of 4.25 percent, the lowest risk premium applied to 10-year-bonds issued by an Asian country, and one of the lowest in the world since the 1997 Korean financial crisis.

The ministry added that the favorable rates are a reflection of continuous restructuring efforts carried out by the country over the last five years and the solid growth posted by Korea compared to other economic rivals.

An MOFE insider said the rates and the amount of interest shown suggests that foreign investors look favorably upon Korea's prospects.

Meanwhile, a ranking official in charge of issuing the stabilization bonds confirmed that Moody's Investors Service had maintained its A3 sovereign rating for Korea, as well as its "negative" outlook.