Subscription for 100 Billion KRW Government Bonds for Individual Investors Starts from the 17th of Next Month

Issuance of 80 Billion KRW in 10-Year Bonds
and 20 Billion KRW in 20-Year Bonds

The Ministry of Economy and Finance announced on the 31st that it will issue a total of 100 billion KRW in government bonds for individual investors in February. This consists of 80 billion KRW in 10-year bonds and 20 billion KRW in 20-year bonds.

The coupon rate will be based on the winning bid rates of government bonds with the same maturities issued in January (2.840% for 10-year bonds, 2.770% for 20-year bonds). A premium rate of 0.35% for 10-year bonds and 0.5% for 20-year bonds will be applied considering market conditions. The effective interest rates when held to maturity will be 3.190% for 10-year bonds and 3.270% for 20-year bonds, respectively.

The subscription period is from the 13th to the 17th 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 online during the subscription period.

If the total subscription amount is within the monthly issuance limit per item, the full amount will be allocated. If the total subscription amount exceeds the monthly issuance limit per item, a uniform allocation will be made up to the standard amount of 3 million KRW, and the remaining quantity will be allocated proportionally to the subscription amount. The allocation results will be notified on the next business day after the subscription period ends.

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, premium 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 increments can be made in units of 100,000 KRW beyond that. The annual purchase limit is up to 100 million KRW.

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