NH Investment & Securities said on the 31st it will launch "retirement pension individual investor treasury bonds," which can be invested in through defined contribution (DC) retirement pensions and individual retirement pension (IRP) accounts next month. It also plans to run a pre-subscription alert and a promotion for subscribers of the retirement pension individual investor treasury bonds.
The promotions are divided into a "pre-subscription alert event," which provides the subscription schedule and information before the product launch, and a "subscription event" for actual investors after launch. The target products are 10-year and 20-year individual investor treasury bonds.
From today through Sept. 8, customers who hold NH Investment & Securities DC or IRP accounts and apply for the pre-subscription alert can receive advance guidance on the detailed schedule and key information of the individual investor treasury bonds. Among those who apply for the alert, 100 people will be selected by lottery to receive a mobile voucher for an A TWOSOME PLACE Americano.
From the 9th of next month through Nov. 30, a drawing will be held for customers who subscribe to at least 1 million won of the retirement pension individual investor treasury bonds. 800 people will receive two mobile vouchers for an A TWOSOME PLACE Americano.
The retirement pension individual investor treasury bonds introduced by NH Investment & Securities are issued by the government of the Republic of Korea and are products for which the state guarantees principal and interest payments. If held to maturity, compound interest calculated annually is applied to the rate that adds a spread to the coupon rate, and principal and interest are paid in a lump sum on the maturity date.
In particular, when operated through retirement pension accounts (DC or IRP), taxation on investment gains is deferred until withdrawal, and pension income tax applies when receiving the pension, allowing investors to fully enjoy the tax benefits of retirement pensions. A representative of NH Investment & Securities said the retirement pension individual investor treasury bonds combine the stability of a state guarantee with the long-term compounding effect, making them an attractive alternative for customers who have operated retirement pensions mainly with principal-and-interest–protected deposits.
Early redemption can be requested starting in the 13th month, which is when one year has passed since the issue date of the purchased bonds. However, under the Act on the Guarantee of Employees' Retirement Benefits, if unavoidable reasons such as payment of retirement benefits or interim withdrawal are recognized, an application is possible even within one year. However, in the case of early redemption, the spread and annual compounding benefits do not apply.
The first subscription period for retirement pension individual investor treasury bonds in September is from the 9th to the 15th.
Jung Hwan, head of the retirement asset management division at NH Investment & Securities, said, "Individual investor treasury bonds offer a state guarantee of principal and interest and allow investors to enjoy annual compounding when held to maturity, providing a new option for long-term retirement asset management."