'Dollar RP' Launched for Short-Term Investment Starting from 1 Dollar

Yuanta Securities Launches Dollar Investment Financial Product Suitable for Short-Term Investment

[Asia Economy Reporter Minwoo Lee] A product that seeks stable short-term interest by investing in the US dollar has been launched.

Yuanta Securities announced on the 8th that it has launched such a 'Dollar RP (Repurchase Agreement)' product.

This is a short-term financial product where customers purchase bonds held by Yuanta Securities in dollars and sell them after a certain period to receive principal and interest in dollars. The interest yield is 0.2% per annum, and it is explained that exchange gains can be obtained if the dollar value rises. The minimum investment amount is 1 dollar (approximately 1,219 KRW), allowing investment with a relatively small amount.

Subscriptions are available at Yuanta Securities branches nationwide, and for more details, customers can inquire at branches or the customer center. The investment value of foreign currency assets may fluctuate due to changes in the KRW-USD exchange rate, which may result in losses. Also, as it is a bond, it is not protected by the Deposit Insurance Corporation under the Depositor Protection Act, and principal loss may occur.

Ki Seung-chan, head of Yuanta Securities FICC Division, said, "Dollar assets cannot be excluded from an individual's financial portfolio, especially to respond to the periodic preference for safe assets caused by economic crises such as the recent COVID-19 pandemic," adding, "In particular, Dollar RP is suitable for flexible management while investing in other dollar products."