[Edaily Reporter Park Jung-Soo ] Korea Investment & Securities is launching government bonds for individual investors that can be purchased through retirement pension accounts.
KOREA INVESTMENT HOLDINGS(071050) Korea Investment & Securities, a subsidiary, announced on the 8th that it will begin selling government bonds for individual investors through Individual Retirement Pension (IRP) and Defined Contribution (DC) accounts.
Subscriptions will be accepted from the 9th to the 15th through online and offline channels, including branches nationwide and the mobile trading system (MTS). Investors can choose between 10-year and 20-year maturities, and the minimum subscription amount is 100,000 won.
Investing through a retirement pension account offers benefits such as tax deductions, tax deferral, and low-rate separate taxation. Since these are government bonds with principal and interest guaranteed by the government, they are not subject to the investment limit on risky assets, allowing up to 100% of retirement pension funds to be invested in them. However, as there is a monthly issuance limit set by the Ministry of Economy and Finance, allocations may be prorated depending on the volume of subscriptions.
If held until maturity, the principal and interest—calculated using compound interest based on the sum of the base coupon rate and the additional interest rate—are paid in a lump sum at maturity. The coupon rates for the government bonds issued in September are 4.415% per annum for the 10-year bond and 4.57% per annum for the 20-year bond.
Early redemption is permitted starting in the 13th month, one year after subscription. In the event of early redemption, interest is paid based on the coupon rate calculated using simple interest.
To coincide with the product launch, Korea Investment & Securities is also holding a retirement pension account transfer event. Until the 30th, all customers who transfer their DC or IRP assets held at other financial institutions to Korea Investment & Securities will receive a mobile gift certificate worth 30,000 won, redeemable at Naver Pay, Shinsegae Co.,Ltd., or Baemin.
Choi Jong-jin, Head of the Pension Innovation Division at Korea Investment & Securities, “Government bonds for individual investors, which offer both a premium interest rate and compound interest benefits, will serve as an attractive investment alternative for pension customers with a preference for stability who are averse to principal loss,” he said. “We also expect them to act as a buffer when constructing a portfolio alongside risky assets such as equity funds or exchange-traded funds (ETFs), helping to reduce the overall volatility of the account and safeguard long-term target returns.”