Next year, a total of 2 trillion won in Government Bonds for individual investors will be issued. The Ministry of Economy and Finance said 140 billion won of that will be issued in Jan.
The Ministry of Economy and Finance (MOEF) said on the 30th that next month it will issue 90 billion won in five-year Government Bonds for individual investors, 40 billion won in 10-year bonds, and 10 billion won in 20-year bonds. The pre-tax yield if held to maturity, calculated by adding a spread to the coupon rate, is 19% (average annual return 3.8%), 54% (average annual return 5.4%), and 147% (average annual return 7.3%), respectively.
The subscription period is from the 9th to the 15th next month. Investors can apply for subscription by visiting a Mirae Asset Securities branch or through its website or mobile application.
The Ministry of Economy and Finance (MOEF) will also allow early redemption of Government Bonds for individual investors issued last year starting next month. The total amount is 713.1 billion won. However, if redeemed before maturity, investors cannot receive compound interest including the additional spread nor the separate taxation benefit on interest income.
Starting next year, the Ministry of Economy and Finance (MOEF) will change the product structure of Government Bonds for individual investors to a coupon bond format that pays interest at the coupon rate annually. Currently, investors receive interest together with principal only if they hold to maturity.
Also in Apr. next year, a three-year Government Bond for individual investors with a shorter maturity than existing products will be launched. The Ministry of Economy and Finance (MOEF) said it will not apply the separate taxation benefit on interest income to the three-year bond due to its shorter maturity. In the second half of next year, investors will also be able to invest in 10-year and 20-year Government Bonds for individual investors through personal retirement pension accounts (defined contribution·IRP).