There were no bids or offers for three-year treasuries.
Bond investors also welcomed an agreement reached early on Friday between creditors of LG Card Co Ltd and its former parent, LG Group, on a bailout for the troubled credit card company, dealers said.
"Governor Park Seung's remarks were the main driver this morning as they sent futures prices higher, while news on LG Card also helped," said a Kyobo Securities dealer.
On the Korea Futures Exchange, the key March contract for three-year treasuries rose nine ticks to 113.37.
Bank of Korea Governor Park Seung said in his New Year speech interest rate policy would be slanted to support higher economic growth and employment in 2005.
He also said he did not see any immediate threat from consumer inflation, although high oil prices and higher public utility charges were potential threats.
Many investors believe the central bank could lower interest rates in 2005 to boost the economy in the face of slowing export growth and sluggish local demand. The central bank cut rates twice in 2004.
"The bank plans to operate interest rate policy in an accommodative manner to the economic cycle while achieving the goal of keeping price stability," Park, who chairs the bank's interest rate-setting committee, said in the prepared speech.
Meanwhile, Yoo Ji-chang, governor of LG Card's leading creditor Korea Development Bank, told reporters LG Group and creditors had decided to provide 500 billion won ($480.3 million) each to help the card company avoid liquidation.
Creditors and LG Group have been in dispute over how to share the cost of a bailout for the country's biggest credit card firm.
Separately, the finance ministry delayed until Sunday the release of the treasury bond issuance plan for January as parliament has been unable to pass a government budget spending bill for 2005, a ministry official said.
The offering plan had been due for release later in the day.