Korea Investment & Securities Launches 'Individual Government Bonds for Personal Investment' via Retirement Pension Accounts... Subscriptions Open from the 9th

Receive a 30,000 Won Gift Card for Transferring DC or IRP Retirement Pension Accounts by September 30

Korea Investment & Securities will offer individual government bonds for personal investment through retirement pension accounts, including Individual Retirement Pension (IRP) and Defined Contribution (DC) accounts.

According to Korea Investment & Securities on September 8, subscriptions for individual government bonds will be available from September 9 to 15 through all branches nationwide as well as online channels such as the mobile trading system (MTS). Customers can choose between maturities of 10 years or 20 years, with a minimum subscription amount set at 100,000 won.

Subscribers will be able to enjoy multiple tax benefits through their retirement pension accounts, including income tax deductions, tax deferral, and a low tax rate on separated taxation. Since these government bonds are guaranteed by the government for both principal and interest, they are not subject to the investment limit for risky assets, allowing up to 100% of retirement pension reserves to be invested. However, as there is a monthly issuance limit set and announced by the Ministry of Economy and Finance, allocations may be pro-rated depending on the total subscription amount.

If held to maturity, the product yields interest by applying the sum of the basic coupon rate and the additional interest rate on an annual compound basis, with both principal and interest paid in a lump sum at maturity. The coupon rate for the government bonds to be issued in September is 4.415% per annum for the 10-year maturity and 4.57% per annum for the 20-year maturity. Early redemption is possible at any time after one year (from the 13th month), and in such cases, interest is paid based on simple interest applied to the coupon rate.

An event is also being offered for customers who transfer their accounts to Korea Investment & Securities in order to purchase individual government bonds. All customers who transfer their DC or IRP assets from another company to Korea Investment & Securities by September 30 will receive a mobile gift card worth 30,000 won, which can be used with Naver Pay, Shinsegae, or Baemin (Baedal Minjok), as per their choice.

Choi Jongjin, Head of Pension Innovation Division, stated, "Individual government bonds for personal investment, which offer an additional interest premium and annual compounding benefits, will provide an attractive investment alternative for pension customers who seek principal stability," adding, "Even when constructing a portfolio alongside riskier assets such as equity funds and exchange-traded funds (ETFs), we expect these bonds to serve as a buffer, reducing overall account volatility and supporting long-term target returns."

This content was produced with the assistance of AI translation services.