Subscription for 150 Billion KRW of Government Bonds for Individual Investors Starts from the 13th of Next Month

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

The Ministry of Economy and Finance announced on the 31st that it will issue a total of 150 billion KRW in government bonds for individual investors in November. 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 government bonds with the same maturities issued in October (3.050% for 10-year bonds, 3.025% for 20-year bonds). The additional margin rate will be applied considering market conditions: 0.35% for 10-year bonds and 0.45% for 20-year bonds.

The subscription period is from the 13th to the 15th of next month, and subscription hours are 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 during the subscription period or through online channels.

If the total subscription amount is within the monthly issuance limit for each bond type, the full amount will be allocated. If the total subscription amount exceeds the monthly issuance limit for each bond type, 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 November government bonds for individual investors is approximately 40% for the 10-year bonds (an average annual yield of 4.0%) and approximately 98% for the 20-year bonds (an average annual yield of 4.9%).

Government bonds for individual investors are bonds issued with purchase eligibility limited 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.

Purchases can be made 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.