'Individual government bonds' attracted 320 billion won in subscriptions in July

Subscription for 10-Year Bonds at 291 Billion KRW, 20-Year Bonds at 29.7 Billion KRW

Approximately 320.7 billion KRW was attracted in the subscription for 10-year and 20-year government bonds for individual investors in July.

On the 17th, the Ministry of Economy and Finance announced that the total number of subscription applications for individual investor government bonds was 14,424 (11,579 for 10-year bonds and 2,845 for 20-year bonds), with subscription amounts totaling about 291 billion KRW for 10-year bonds and about 29.7 billion KRW for 20-year bonds, amounting to approximately 320.7 billion KRW.

The initial issuance limit for July individual investor government bonds was 150 billion KRW for 10-year bonds and 50 billion KRW for 20-year bonds. However, after the subscription period ended, considering the oversubscription of 10-year bonds, the remaining quantity of 20-year bonds was adjusted to 10-year bonds.

Accordingly, the issuance limits by bond type for individual investor government bonds are approximately 170.3 billion KRW for 10-year bonds and about 29.7 billion KRW for 20-year bonds.

Subscription amounts were allocated according to the allocation criteria: for 10-year bonds, a uniform allocation was made up to the standard amount (3 million KRW), and the remaining quantity was allocated proportionally to the subscription amount; for 20-year bonds, the entire subscription amount was allocated.

Individual investor government bonds are government bonds issued with purchase eligibility limited to individuals. If held until maturity, investors can benefit from the nominal interest rate, additional interest 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, individual investor government bonds cannot be transferred to others or used as collateral such as pledge rights.

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 purchases can be increased in multiples of 100,000 KRW. The annual purchase limit is 1 billion KRW. The subscription period for August is from the 12th to the 14th of next month.