Mirae Asset Securities announced on May 11 that it will be accepting subscriptions for retail government bonds in May. The subscription period will run for five business days until May 15, with a total issuance amount of 200 billion won.
By bond type, the issuance amounts are as follows: 5 billion won for the 3-year coupon bond, 5 billion won for the 3-year compound interest bond, 50 billion won for the 5-year bond, 110 billion won for the 10-year bond, and 30 billion won for the 20-year bond. The additional interest rates are: 0% for the 3-year bond, 0.3% for the 5-year bond, 1.05% for the 10-year bond, and 1.30% for the 20-year bond.
If held to maturity, the pre-tax yields are as follows: 10.35% total (annual average 3.45%) for the 3-year coupon bond, 10.71% total (annual average 3.57%) for the 3-year compound interest bond, 20.67% total (annual average 4.13%) for the 5-year bond, 59.28% total (annual average 5.92%) for the 10-year bond, and 160.80% total (annual average 8.04%) for the 20-year bond.
A representative from Mirae Asset Securities explained, “This year, due to improvements in the relevant system, the attractiveness of these bonds has increased, resulting in four consecutive months of oversubscription for all maturities, including the 3-year bond first issued last month, as well as the 5-year, 10-year, and 20-year bonds.”
Retail government bonds are savings-type products issued by the government specifically for individual investors. If held to maturity, interest is paid on a compound basis by adding the base interest rate and the additional interest rate. Tax benefits are provided through separate taxation for purchases up to 200 million won.
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A company representative emphasized, “As the sole sales agent, Mirae Asset Securities is committed to providing accurate information to customers and will do its utmost to ensure that more people can conveniently access these products.”
This content was produced with the assistance of AI translation services.
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