Kiwoom Securities, Discount on Small Bond Trading Fees

Kiwoom Securities announced on the 23rd that it will discount the transaction fees for the KRX small bond market until the end of this year.

The KRX (Korea Exchange) bond market is divided into four segments. Among them, the markets accessible to individual investors are the general bond market and the small bond market. Following the reduction of transaction fees to 0% for the KRX general bond market starting May 31, Kiwoom Securities decided to lower the transaction fees for the small bond market from 0.3% to 0% beginning on the 23rd of this month. However, the fees paid to related institutions such as KRX and the Korea Securities Depository remain at 0.00519496%, so from the investor's perspective, the cost of on-market trading of general and small bonds through Kiwoom Securities will be 0.00519496% of the transaction amount.

The small bond market was established to enhance the liquidity of special purpose bonds (government and public bonds that must be purchased when obtaining various permits such as housing purchase, real estate registration, and vehicle registration). Bonds mainly traded include the first-class national housing bonds, urban railway bonds, and regional development bonds issued in the current month. Individual investors can trade KRX bonds through securities accounts just like trading stocks. The regular trading hours for on-market bonds are the same as for stocks, from 9:00 AM to 3:30 PM.

Kiwoom Securities stated, "Compared to stock investments, bond investments are more stable and have lower expected returns, so reducing transaction costs can be even more important. We lowered the transaction fees for individual investors who consider not only interest rates but also transaction costs when trading bonds."