Government Bonds for Individual Investors

In a strategic move to engage individual investors, South Korea's Ministry of Economy and Finance announced on January 31 the issuance of government bonds specifically designed for individual investors. This initiative, totaling 100 billion won, is set to take place in February, offering a secure investment opportunity backed by the government.

Details of the Issuance

The issuance is divided into two categories: 80 billion won for 10-year bonds and 20 billion won for 20-year bonds. The subscription period is scheduled from February 13 to 17. The coupon rates for these bonds are closely linked to the bid rates of similar maturity treasury bonds issued in January, with 10-year bonds at 2.840% and 20-year bonds at 2.770%.

Attractive Interest Rates

To enhance the attractiveness of these bonds, additional interest rates of 0.35% for 10-year bonds and 0.5% for 20-year bonds are anticipated, reflecting the current market conditions. This adjustment is expected to yield an average annual return, pre-tax, of approximately 3.7% for 10-year bonds and 4.5% for 20-year bonds.

How to Invest

Interested investors can subscribe to these bonds during business hours, from 9:00 AM to 3:30 PM, by visiting sales agency branches or applying online. The allocation process is designed to ensure a fair distribution among investors. If the total subscription does not exceed the monthly issuance limit, the entire amount will be allocated. In cases of oversubscription, an equal allocation will be made up to a standard amount of 3 million won, with any remaining quantity distributed proportionally based on the subscription amount. The results of the allocation will be announced on the next business day following the end of the subscription period.