Subscription for 150 Billion KRW of Government Bonds for Individual Investors Starts from the 10th of Next Month

Issuance of 130 Billion KRW 10-Year Bonds and 20 Billion KRW 20-Year Bonds

The Ministry of Economy and Finance announced on the 30th that it will issue a total of 150 billion KRW in government bonds for individual investors in September. This includes 130 billion KRW in 10-year bonds and 20 billion KRW in 20-year bonds. The coupon rates will be based on the winning bid rates of government bonds with the same maturities issued in August (10-year bonds at 2.980%, 20-year bonds at 3.000%). The additional rates will be set considering market conditions, with 0.22% applied to 10-year bonds and 0.42% to 20-year bonds.

The subscription period will be from the 10th to the 12th of next month, with subscription hours from 9:00 AM to 3:30 PM on business days. Individual investors wishing to purchase can apply for subscription by visiting the sales agency’s branch or through online channels during the subscription period.

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

The maturity yields (pre-tax) for the September government bonds for individual investors are approximately 37% for the 10-year bonds (an average annual yield of 3.7%) and approximately 96% for the 20-year bonds (an average annual yield of 4.8%).

Government bonds for individual investors are bonds issued with purchase eligibility limited 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.

They can be purchased 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 amounts exceeding 100,000 KRW can be increased in increments of 100,000 KRW. The annual purchase limit is up to 100 million KRW.

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