Why soaring US long-term yields are becoming Korea’s problem

A surge in long-term US Treasury yields is driving up borrowing costs in Korea, lifting government bond yields and adding pressure on companies, households and stocks.

The spillover was on full display last week.

As the US 30-year yield climbed to 5.33 percent, its highest since 2007, Korea’s 30-year government bond yield surged to a record 4.751 percent.

The yields have since retreated, but the underlying pressures — heavy US debt issuance, aggressive AI-related borrowing and weakening demand f