Ministry of Finance in Sejong Government Complex. [Photo by Kim Yu-jin]
Next month, 160 billion won worth of personal investment bonds will be issued. The 20-year bonds are expected to yield an average of 8.1% annually, totaling 162.8% before taxes if held to maturity.
On June 29, the Ministry of Finance announced that it will issue 160 billion won in personal investment bonds next month.
The breakdown includes 30 billion won in 3-year fixed-rate bonds, 70 billion won in 3-year compound interest bonds, 600 billion won in 5-year bonds, 700 billion won in 10-year bonds, and 200 billion won in 20-year bonds.
The coupon rates will be based on the auction rates of similar government bonds issued this month. The rates are set at 4.000% for 3-year bonds, 4.045% for 5-year bonds, 4.115% for 10-year bonds, and 4.300% for 20-year bonds.
An additional interest rate of 0.05% will be applied to 5-year bonds, 0.60% to 10-year bonds, and 0.65% to 20-year bonds. No additional interest will be applied to 3-year bonds, considering the current financial market rates.
If held to maturity, the pre-tax yields for the personal investment bonds issued in July are approximately 12.0% (average annual 4.0%) for 3-year fixed-rate bonds, 12.5% (average annual 4.2%) for 3-year compound interest bonds, 22.2% (average annual 4.4%) for 5-year bonds, 58.5% (average annual 5.9%) for 10-year bonds, and 162.8% (average annual 8.1%) for 20-year bonds.
The subscription period will run from July 8 to July 14, during business hours from 9 a.m. to 4 p.m. Applications can be made at Mirae Asset Securities branches or through their website and mobile application.
If the total subscription amount is within the monthly issuance limit, all applications will be fully allocated. If the limit is exceeded, priority will be given to amounts up to 3 million won, with the remaining allocation distributed proportionally based on subscription amounts. Results will be announced on the business day following the subscription deadline.
Individual investors will have the option to redeem personal investment bonds issued between June 2024 and June 2025 early during July. However, early redemption will only yield the principal and interest based on the coupon rate, excluding the compound interest with additional rates and the benefits of separate taxation on interest income.
On June 29, the Ministry of Finance announced that it will issue 160 billion won in personal investment bonds next month.
The breakdown includes 30 billion won in 3-year fixed-rate bonds, 70 billion won in 3-year compound interest bonds, 600 billion won in 5-year bonds, 700 billion won in 10-year bonds, and 200 billion won in 20-year bonds.
The coupon rates will be based on the auction rates of similar government bonds issued this month. The rates are set at 4.000% for 3-year bonds, 4.045% for 5-year bonds, 4.115% for 10-year bonds, and 4.300% for 20-year bonds.
An additional interest rate of 0.05% will be applied to 5-year bonds, 0.60% to 10-year bonds, and 0.65% to 20-year bonds. No additional interest will be applied to 3-year bonds, considering the current financial market rates.
If held to maturity, the pre-tax yields for the personal investment bonds issued in July are approximately 12.0% (average annual 4.0%) for 3-year fixed-rate bonds, 12.5% (average annual 4.2%) for 3-year compound interest bonds, 22.2% (average annual 4.4%) for 5-year bonds, 58.5% (average annual 5.9%) for 10-year bonds, and 162.8% (average annual 8.1%) for 20-year bonds.
The subscription period will run from July 8 to July 14, during business hours from 9 a.m. to 4 p.m. Applications can be made at Mirae Asset Securities branches or through their website and mobile application.
If the total subscription amount is within the monthly issuance limit, all applications will be fully allocated. If the limit is exceeded, priority will be given to amounts up to 3 million won, with the remaining allocation distributed proportionally based on subscription amounts. Results will be announced on the business day following the subscription deadline.
Individual investors will have the option to redeem personal investment bonds issued between June 2024 and June 2025 early during July. However, early redemption will only yield the principal and interest based on the coupon rate, excluding the compound interest with additional rates and the benefits of separate taxation on interest income.
* This article has been translated by AI.
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