“The brokerage firm, Mirae Asset Securities, the exclusive distributor of ‘Individual Investment National Bonds’ a risk-free savings product guaranteed by the government, announced on the 12th that they will start accepting individual subscriptions for the national bonds from the 13th. The individual investment national bonds, which will start issuing in June 2024, are government bonds aimed at providing a new form of stable long-term investment to support individual asset formation for retirement preparation. Upon maturity, holders can receive additional interest rates, compound interest, and separate tax benefits, while also enjoying the stability guaranteed by the government, generating great interest among the public even before the launch.
The upcoming issuance in June will have a fixed interest rate of 3.69% for the 10-year maturity and 3.725% for the 20-year maturity. The subscription period will be from the 13th to the 17th for 3 days. Individuals can subscribe up to 100 million won per year, and the benefits apply upon maturity. Individual investment national bonds can only be purchased through a dedicated account, so it is essential to open an account in advance. Only individuals (including minors) are eligible for investment, and they can subscribe in minimum increments of 100,000 won up to a maximum of 1 billion won annually. Accounts can be opened through Mirae Asset Securities’ mobile app ‘M-STOCK’ or at any Mirae Asset Securities branch. For inquiries about individual investment national bonds, individuals can contact Mirae Asset Securities’ dedicated consultation center.
There are also considerations to keep in mind when investing in individual national bonds. These bonds are long-term investment products, and upon maturity, both the interest and principal are received in a lump sum (no interest payments during the holding period). In the case of early redemption, a simple interest rate is applied, and additional interest rates, compound interest, and separate tax benefits are not applicable. Early redemption is possible starting from one year after purchase, but it is subject to a monthly limit and processed on a first-come, first-served basis, so it may not always be available. Investors who may need to withdraw their investment amount during the holding period should exercise caution since using individual investment national bonds as collateral for loans or setting up pledges is not allowed, and the transfer of ownership is restricted.”