Interest Rates: When interest rates rise, bond prices usually fall, and vice versa. This is because new bonds issued will offer higher yields, making existing bonds with lower yields less attractive.

Inflation: Higher inflation erodes the purchasing power of future bond payments, leading to lower bond prices. Investors demand higher yields to compensate for inflation risk.

Credit Rating: A downgrade in the credit rating of the issuer (Korean government in this case) suggests a higher risk of default, causing bond prices to drop. Conversely, an upgrade typically increases bond prices.

Economic Growth: Strong economic growth can sometimes lead to higher interest rate expectations, negatively impacting bond prices. Conversely, a weaker economy may lead to lower rates and higher bond prices.

Market Sentiment: Overall investor confidence and risk appetite can influence bond prices. During periods of uncertainty, investors often flock to safe-haven assets like government bonds, pushing prices up.

Currency Fluctuations: For foreign investors, fluctuations in the Korean Won (KRW) exchange rate can affect the return on KR3Y.GBONDs. A weakening KRW may make the bonds less attractive.

Supply and Demand: The balance between the supply of KR3Y.GBONDs and the demand for them plays a crucial role in price determination. High demand pushes prices up, while increased supply can lower prices.

Government Fiscal Policy: Changes in government spending and taxation policies can influence the bond market. Increased government borrowing may lead to a larger supply of bonds and potentially lower prices.