Subscription for Individual Investor Government Bonds for March 2025
Total Issuance Limit Set at 120 Billion KRW
5-Year Bonds Newly Launched, Attracting Increased Interest
Expanded Annual Purchase Limit and Separated Taxation Benefits
Introduction of Regular Automatic Subscription Service for Convenience
Mirae Asset Securities announced on the 10th that it will conduct subscription for individual investor government bonds for March 2025 from the 11th to the 17th.
The total issuance limit for individual investor government bonds in March is 120 billion KRW, with 60 billion KRW for 5-year bonds, 50 billion KRW for 10-year bonds, and 10 billion KRW for 20-year bonds. In particular, 60 billion KRW, which is 50% of the total issuance amount, will be allocated to the newly launched 5-year bonds, and it is expected that interest from individual investors will significantly increase.
The pre-tax interest rates applied upon maturity holding are approximately 16.11% for 5-year bonds (annual average 3.22%), approximately 36.87% for 10-year bonds (annual average 3.68%), and approximately 87.86% for 20-year bonds (annual average about 4.39%).
Starting from this March subscription, the annual purchase limit per person is expanded to 200 million KRW. Investors who purchased 100 million KRW in the January and February subscriptions this year can additionally purchase 100 million KRW, and at the same time, enjoy the separated taxation (15.4%) benefit up to a total purchase amount of 200 million KRW.
The 5-year bonds can also receive separated taxation benefits through the revision of the Enforcement Decree of the Restriction of Special Taxation Act (February 28).
A representative from Mirae Asset Securities said, "Individual investor government bonds are a stable investment tool and also a tax-saving product that provides individual investors with additional interest rates and compound interest with separated taxation upon maturity holding," adding, "With the new launch of 5-year bonds starting in March, the product lineup by maturity is enhanced, making it worth considering as a mid- to long-term investment alternative in a declining interest rate environment."
Additionally, starting from this March subscription, a new 'Regular Automatic Subscription Service' that automatically executes subscriptions separately from the existing subscription method has been introduced to improve convenience for financial consumers. Applications for each bond type (5-year, 10-year, 20-year) are limited to one time each and can be made either in person or via the mobile app M-STOCK.
When applying for the service, the period can be selected up to a maximum of 120 months, and the monthly subscription amount can be set from a minimum of 100,000 KRW to a maximum of 3 million KRW depending on the bond type. It should be noted that automatic transfer agreements are not linked with the Regular Automatic Subscription Service and must be registered separately.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
