Korea plans to sell 4 trillion won ($3.31 billion) worth of Treasury bills in three separate auctions in February to help cover government expenses, the finance ministry said Friday.

The cash generated will be used to cope with temporary shortfalls in the money supply and allow the state to push forward various spending projects that are vital for the country, it said.

The ministry added the sale of the bills can further help stabilize the management of state-controlled funds.

"The bills will be sold through competitive bidding, with banks, brokerages and financial institutions that already buy the government's monetary stabilization bonds to handle the transactions," it said.

The ministry said every effort will be made to reduce interest payment costs.

The government, meanwhile, said it plans to sell 3-6 trillion won worth of Treasury bills on a monthly basis this year. The last bills will be sold before the end of September because they must be bought back by the end of the year. (Yonhap)