"Increasing Stable Investment Opportunities and Building Retirement Assets"
Going forward, individuals will be able to invest directly in retail government bonds through their retirement pension accounts.
The Ministry of Economy and Finance announced on the 12th that, starting in September, it will introduce a制度 that allows individuals to invest in 10-year and 20-year retail government bonds through their defined contribution (DC) retirement pension accounts and individual retirement pension (IRP) accounts.
To this end, it formed a consultative body for annuity-type retail government bonds and reviewed system development and operation for stable government bond sales, as well as difficulties faced by investors and financial institutions.
The selling institutions will be securities firms such as KB, NH Investment, Mirae Asset, Samsung, Shinyoung, Kiwoom, and Korea Investment, and banks such as Nonghyup and Shinhan. The participating financial institutions, together with the Korea Securities Depository, plan to build a trading system covering subscription, allocation, and redemption of retail government bonds.
The Ministry of Economy and Finance stated, "Among retirement pension providers that hold a license for investment brokerage business, those financial institutions that can prioritize preparations for selling retail government bonds have decided to participate," adding, "We expect active participation by more financial institutions going forward."
In early December last year, the government announced the introduction of annuity-type retail government bonds as part of its efforts to expand retail government bonds. This policy both broadens investors' opportunities to choose stable investment products and helps the public build assets for old age.
The Ministry of Economy and Finance added, "We plan to continuously develop and expand the retail government bond制度 so that individual investment in government bonds can be further revitalized."
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