The total issuance limit is 130 billion KRW, allocated by maturity as follows: 80 billion KRW for 5-year bonds, 40 billion KRW for 10-year bonds, and 10 billion KRW for 20-year bonds.
In particular, the 5-year government bonds have received strong interest from investors, leading to a 10 billion KRW increase in the issuance volume scheduled for this month compared to the previous month. This marks the second increase since the initial issuance in March.
Although the coupon rate has decreased compared to the previous month, due to a drop of more than 0.1% in the government bond yield, the Ministry of Economy and Finance raised the additional interest rate, thereby maintaining the actual yield upon maturity. The pre-tax yields are 16.08% (annual 3.21%) for the 5-year bond, 36.73% (annual 3.67%) for the 10-year bond, and 87.68% (annual 4.38%) for the 20-year bond.
In March, Mirae Asset Securities introduced a 'Regular Automatic Subscription Service' for individual investor government bonds. This service helps customers experience the effect of receiving a monthly pension by consistently purchasing individual investor government bonds every month and then receiving principal and interest payments monthly after a certain period. As of May 7, approximately 1,600 customers were using this service, and the number continues to rise.
A representative from Mirae Asset Securities stated, "Individual investor government bonds are a stable investment vehicle that offers additional interest rates and compound annual interest if held to maturity, as well as separate taxation for tax savings. They are a suitable choice for investors seeking mid- to long-term alternatives in a declining interest rate environment."
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