Shinhan Investment Corp. announced on the 12th that it will launch special issue bonds aimed at long-term transaction customers who have held their brokerage-type Individual Savings Accounts (ISAs) for three years or more.
These special issue bonds are government bonds (Government Bonds 20-6) maturing on Sep. 10. The nominal interest rate is 1.125% per year before tax. If held to maturity, the equivalent bank deposit yield is 4.3% per year, and the trading interest rate is 3.85% per year (as of Jun. 12).
The equivalent bank deposit yield is the yield calculated by comparing the investment yield with the bank deposit interest rate. Capital gains from bond investments are tax-exempt, so the equivalent bank deposit yield allows investors to gauge how their investment yield compares to the bank deposit interest rate.
Special issue bonds are products exclusive to brokerage-type ISAs. Shinhan Investment Corp. explained that anyone who has held an account for three years or more can purchase them. The total sales limit is 10 billion won. It may end early if the limit is exhausted. Purchase applications can be made through the 'Shinhan SOL Securities' app, nationwide sales offices, or the website.