Korea Investment & Securities Opens Subscription for "Individual Investment Treasury Bonds" Through Retirement Pension Accounts

Applications accepted through Nov. 17 via IRP and DC accounts; customers allocated at least KRW 100,000 entered into a gift certificate drawing

Korea Investment & Securities said on Nov. 11 that it will sell individual investment Treasury bonds through individual retirement pension (IRP) and defined contribution (DC) accounts through Nov. 17.

Individual investment Treasury bonds pay the principal and interest in a lump sum at maturity, calculated with annual compounding by adding the bonus rate to the base coupon rate. Customers who subscribe through IRP or DC accounts can benefit from tax deductions, tax deferral and preferential separate taxation at a lower rate.

At subscription, customers can choose between 10-year and 20-year bonds. The minimum investment is KRW 100,000. Customers can invest up to 100% of their account balance, but the monthly issuance limit set by the Ministry of Economy and Finance applies, so they may receive an allocation for only part of the amount they apply for.

Early redemption is available from the 13th month, after one year has passed since subscription. The bonus rate and compounding benefits do not apply to early redemptions, but customers can receive interest calculated using the coupon rate on a simple-interest basis. The coupon rates for this issuance are 4.155% per year for the 10-year bonds, including a 0.630% bonus rate, and 4.155% per year for the 20-year bonds, including a 0.790% bonus rate.

An event is also being held for customers who participate in the subscription. A total of 2,026 customers who are allocated at least KRW 100,000 in individual investment Treasury bonds will be selected by lottery to receive mobile gift certificates worth KRW 10,000 each. Further details are available at Korea Investment & Securities branches nationwide and through its mobile trading system (MTS).

"If held to maturity, this issuance is expected to deliver returns of 59.6% for the 10-year bonds (an average annual return of 6.0%) and 162.6% for the 20-year bonds (an average annual return of 8.1%), thanks to the bonus rates and annual compounding. These bonds will be an excellent long-term investment alternative for pension subscribers who wish to avoid the risk of losing principal," said Choi Jongjin, head of the Pension Innovation Division at Korea Investment & Securities. "When combined in a portfolio with risk assets whose returns depend on performance, such as equity funds and ETFs, they are expected to serve as a reliable buffer, reducing asset volatility and helping protect target returns."

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