"Individual Investment Government Bonds" 200 Billion Subscription Starts from the 12th of Next Month

The Ministry of Economy and Finance announced on the 30th that it will issue a total of 200 billion KRW in government bonds for individual investors in August.

This consists of 150 billion KRW in 10-year bonds and 50 billion KRW in 20-year bonds. The coupon rates will be based on the winning bid rates of the same maturity government bonds issued in July (10-year at 3.185%, 20-year at 3.085%). The additional rates will be applied considering market conditions: 0.22% for the 10-year bonds and 0.42% for the 20-year bonds.

The subscription period is from the 12th to the 14th of next month, with subscription hours from 9:00 AM to 3:30 PM on business days. Individual investors wishing to purchase can apply during the subscription period by visiting the sales agency’s branch or through online channels (website or mobile app).

If the total subscription amount is within the monthly issuance limit per item, the full amount will be allocated. If the total subscription exceeds the monthly issuance limit per item, a standard amount (3 million KRW) will be uniformly allocated first, and the remaining quantity will be allocated proportionally based on the subscription amount. The allocation results will be notified on the next business day after the subscription period ends.

The maturity yield (pre-tax basis) for the August government bonds for individual investors is approximately 40% (annual average yield of 4.0%) for the 10-year bonds and approximately 99% (annual average yield of 5.0%) for the 20-year bonds.

Government bonds for individual investors are bonds issued with purchase eligibility restricted to individuals. If held until maturity, investors can benefit from the coupon rate, additional rate, and compound interest applied annually. Additionally, interest income up to 200 million KRW is subject to a separate tax rate of 14%.

However, unlike general government bonds that can be traded in the market, government bonds for individual investors cannot be transferred to others or used as collateral such as pledges.

Purchases can be made after opening a dedicated account (one account per person) at Mirae Asset Securities, the sales agency. The minimum purchase unit is 100,000 KRW, and purchases can be increased in multiples of 100,000 KRW. The annual purchase limit is 100 million KRW.

This content was produced with the assistance of AI translation services.