Subscription for 150 Billion KRW Government Bonds for Individual Investors Starts from the 11th of Next Month

Issuance of 130 Billion KRW in 10-Year Bonds and 20 Billion KRW in 20-Year Bonds

The Ministry of Economy and Finance announced on the 30th that it will issue a total of 150 billion KRW in government bonds for individual investors in October. This includes 130 billion KRW in 10-year bonds and 20 billion KRW in 20-year bonds. The coupon rate will be based on the winning bid rates of the same maturity government bonds issued in September (3.000% for 10-year bonds, 2.920% for 20-year bonds). The additional margin rate will be applied considering market conditions: 0.4% for 10-year bonds and 0.5% for 20-year bonds.

The subscription period is from the 11th to the 15th of next month, with subscription hours from 9:00 AM to 3:30 PM on business days. Individual investors wishing to purchase can apply for subscription by visiting the sales agency’s branch or through online channels during the subscription period.

If the total subscription amount is within the monthly issuance limit per item, the full amount will be allocated. If the total subscription amount exceeds the monthly issuance limit per item, a standard amount of 3 million KRW will be uniformly allocated first, and the remaining quantity will be allocated proportionally based on the subscription amount. The allocation results will be notified on the next business day after the subscription period ends.

The maturity yield (pre-tax) for the October government bonds for individual investors is approximately 40% (annual average yield of 4.0%) for the 10-year bonds and approximately 96% (annual average yield of 4.8%) for the 20-year bonds.

Government bonds for individual investors are bonds issued with purchase eligibility restricted to individuals. If held until maturity, investors can benefit from the coupon rate, additional margin 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, government bonds for individual investors cannot be transferred to others or used as collateral such as pledges.

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 amounts exceeding 100,000 KRW can be increased in increments of 100,000 KRW. The annual purchase limit is up to 100 million KRW.