Mirae Asset Securities Begins August Subscription for Individual Investor Government Bonds

Mirae Asset Securities announced on August 8 that it will be accepting subscriptions for retail government bonds from August 8 to August 14.

The total planned issuance for this subscription is 140 billion won. By maturity, this consists of 90 billion won in 5-year bonds, 40 billion won in 10-year bonds, and 10 billion won in 20-year bonds, which is the same as last month.

This month, the 10-year and 20-year bonds are being offered with record-high additional interest rates of 0.55% and 0.695%, respectively. As a result, the pre-tax maturity yields, including the effect of compound interest, are 16.08% (annual 3.21%) for the 5-year bond, 39.47% (annual 3.94%) for the 10-year bond, and 98.90% (annual 4.94%) for the 20-year bond. These yields apply only if the bonds are held until maturity.

Retail government bonds are savings products issued by the government specifically for individual investors. Because they are issued by the state, they offer a high level of security. In addition, if held to maturity, interest is paid on a compound basis by adding the base rate and the additional rate, and tax benefits are available through separate taxation on interest income for amounts up to 200 million won. Investments can start from as little as 100,000 won, and there are no transaction fees. Early redemption is also possible starting from one year (the 13th month) after issuance. However, in the case of early redemption, only interest based on the base rate is paid; compound interest and separate taxation benefits do not apply.

Since July, Mirae Asset Securities has been accepting early redemption requests for bonds that have passed the one-year holding period. This month, early redemption applications can be made either by visiting a Mirae Asset Securities branch or online during the same period as the subscription, from August 8 to August 14.

Since its initial launch in June last year, a total of 31 retail government bond issues have been offered, amounting to approximately 1.47 trillion won as of July this year. In particular, since the introduction of the 5-year bond in March this year, around 100 billion won has been issued each month, reflecting the high level of trust in the market. The company explained that, amid financial market uncertainty and falling benchmark interest rates, investor attention is focused on products that offer both profitability and stability.

A Mirae Asset Securities representative stated, "While benchmark interest rates have been falling this year, the agreed yields on retail government bonds have remained stable or even increased. The security of government bonds, the higher yields compared to other market interest rate products due to additional interest and compounding when held to maturity, and the separate taxation benefits have all contributed to growing nationwide interest through word of mouth. As the exclusive distributor, Mirae Asset Securities will not only provide reliable service with a sense of responsibility, but will also do its utmost to ensure that more people can conveniently access these products."