SEOUL: South Korean government-bond futures fell sharply after the government said on Friday it would have to sell far more bonds than expected to plug an expected budget deficit.

The June futures on 10-year treasury bonds fell 0.66 points to 118.75 by 0310 GMT, while the June contract on 3-year bonds lost 0.28 points to 107.05.

The finance ministry said earlier in the day this year's budget revenue would probably fall around 12 trillion won ($10.79 billion) short of the original projection due to a weaker economy.