1.4 Billion Won in Government Bonds for Individual Investors to Be Issued in October

Subscription Period: Five Business Days Between October 2 and 15

The government will issue 140 billion won in government bonds for individual investors next month. The issuance limits by type are 90 billion won for five-year bonds, 40 billion won for ten-year bonds, and 10 billion won for twenty-year bonds.

The Ministry of Economy and Finance announced this plan for the issuance of government bonds for individual investors on September 24.

The coupon rates will be based on the winning bid rates of government bonds with the same maturities issued this month: 2.585% for five-year bonds, 2.835% for ten-year bonds, and 2.805% for twenty-year bonds. The additional rates are 0.445% for five-year bonds, 0.55% for ten-year bonds, and 0.695% for twenty-year bonds.

The interest rates applied when held to maturity are 3.030% for five-year bonds, 3.385% for ten-year bonds, and 3.500% for twenty-year bonds. The pre-tax yields remain at the same level as this month: approximately 16% for five-year bonds, about 40% for ten-year bonds, and around 99% for twenty-year bonds. The average annual yields are 3.2%, 4.0%, and 4.9%, respectively.

If the total subscription amount is within the monthly issuance limit for each type, the full amount will be allocated. If the total subscription amount exceeds the monthly issuance limit for each type, up to the standard amount (3 million won) will be allocated equally, and the remaining volume will be distributed in proportion to the subscription amount. The allocation results will be announced on the business day following the end of the subscription period.

The subscription period will be five business days between October 2 and 15, excluding public holidays. Applications are accepted from 9 a.m. to 4 p.m. on business days. Individual investors wishing to purchase can apply by visiting a sales agency branch or through online channels during this period.

Meanwhile, this month, individual investors can redeem up to 623.5 billion won of government bonds for individual investors issued over the four months from June to September last year before maturity. In this case, only the principal and interest based on the coupon rate at the time of purchase will be returned. There will be no compound interest including the additional rate, nor will there be any benefits from separate taxation on interest income.