KB Securities Presents Economic Education Method Using Children's Sebaetdon (New Year's Money)

Proposed Strategies for Utilizing CMA Accounts in Children's Financial Education

On the 14th, KB Securities presented an economic education plan that allows children to utilize the New Year's holiday money and allowances collected through Comprehensive Asset Management Accounts (CMA).

Recently, the number of minor customers (ages 0 to 18) holding CMA accounts at KB Securities has significantly increased, with many parents using these accounts for their children's financial education. Over the past year, the number of minor customers using KB Securities CMA accounts has grown substantially. Compared to the end of January 2023, the number of customers increased more than 4.1 times by the end of December, and the account balance also grew more than 5.4 times.

Many minor children are also participating in investment activities through public offering subscriptions, actively using CMA accounts as parking accounts due to their flexible deposit and withdrawal options and relatively high interest rates. Last year, 55,373 minor customers participated in public offering subscriptions through KB Securities, and the current pre-tax annual interest rate for KB Securities’ demand deposit-type issuance CMA is about 3.0% for individuals.

Additionally, parents can use CMA to naturally expose their children to the financial environment. KB Securities CMA directly shows the profit payment details during the investment period in amounts, allowing young children to easily understand their earnings. Furthermore, children can create nicknames for each account according to their intended use, helping them become accustomed to setting financial goals and managing assets systematically.

Using KB Securities’ installment-type issuance CMA is also a good method for saving money without a specific purpose, such as children’s New Year's money or allowances. It allows monthly installment subscriptions starting from 100,000 KRW up to a monthly limit of 10 million KRW, offering a higher yield (pre-tax annual 5% for 12 months, individual) than the demand deposit type, which provides free deposit and withdrawal, enabling effective investment.

Issuance notes can only be issued by securities companies designated as ultra-large investment banks (IB) with equity capital exceeding 4 trillion KRW. KB Securities issues them based on its high credit rating (credit rating AA+, as of March 28, 2023, by Korea Ratings), and currently, only four securities companies, including KB Securities, can issue them domestically.

KB Securities suggested that children directly see and experience the growth of their assets by utilizing the advantages of CMA. Park Young-min, Head of the Asset Management Tribe at KB Securities, stated, "We are continuously developing intuitive mobile trading system (MTS) screens and content to help minor customers use CMA more efficiently," adding, "We also plan to provide as much information and content as possible so that various customers can enjoy many benefits from using CMA."

Minor children can open CMA accounts non-face-to-face through KB Securities’ MTS platforms 'KB M-able (Mable)' and 'M-able mini (Mable Mini),' and further details can be confirmed through KB Securities Prime Center and Customer Center.