Mirae Asset Securities announced on the 10th that it will begin the first subscription for Government Bonds for individual investors on the 13th.
The total issuance scale of Government Bonds for individual investors this year is 1.3 trillion won, a 30% increase from the previous year. The issuance limit for January is 800 million won for 10-year bonds and 200 million won for 20-year bonds. The pre-tax coupon rates are 2.665% for 10-year bonds and 2.750% for 20-year bonds. An additional charge of 0.50% will be applied.
When held to maturity, both the coupon rate and additional charge are applied with compound interest. The sum of the coupon rate and additional charge for 10-year bonds is 3.165%. If 100 million won is purchased and held to maturity, one can receive 136.56 million won (pre-tax 36.56%). For 20-year bonds, the sum of the coupon rate and additional charge is 3.25%. If 100 million won is purchased and held to maturity, one can receive 189.58 million won (pre-tax 89.58%).
Government Bonds for individual investors are guaranteed by the government, providing high stability. However, if redeemed early, only the coupon rate is applied as simple interest, while the additional charge and compound interest benefits do not apply.
A representative from Mirae Asset Securities noted, "When the base rate is lowered, the interest rates of matching assets such as deposits and bonds are likely to continue to decline," adding that considering the current market conditions, the January issuance, which applies an additional charge of 0.5%, would be a good time to purchase Government Bonds for individual investors.