Mirae Asset Securities said it will accept subscriptions for August retail government bonds over five business days, from Monday through Friday.
The total issuance for this round is 150 billion won ($106 million), broken down by maturity: 3 billion won in 3-year coupon bonds, 7 billion won in 3-year compound-interest bonds, 70 billion won in 5-year bonds, 50 billion won in 10-year bonds, and 20 billion won in 20-year bonds. Reflecting recent investor preferences, the company increased the 5-year tranche by 10 billion won from the previous month.
The spread rates are 0% for 3-year bonds, 0.05% for 5-year bonds, 0.5% for 10-year bonds, and 0.4% for 20-year bonds. For investors who hold to maturity, the pre-tax yields are: 11.3% (3.8% annualized) for 3-year coupon bonds, 11.7% (3.9% annualized) for 3-year compound-interest bonds, 22.9% (4.6% annualized) for 5-year bonds, 59.1% (5.9% annualized) for 10-year bonds, and 161.8% (8.1% annualized) for 20-year bonds.
Subscriptions can be submitted through Mirae Asset Securities branches nationwide or via its mobile trading system, M-STOCK, between 9 a.m. and 4 p.m.
Cumulative subscriptions for retail government bonds through July reached approximately 2.15 trillion won. Against a total offering size of 1.26 trillion won, the average competition ratio stood at 1.70:1. Retail investor interest in the bonds has held steady, driven largely by those seeking stable long-term investment options.
Retail government bonds are savings-type government bonds issued exclusively for individual investors. They offer principal protection, compound annual interest (for compound-interest bonds), and a separate taxation benefit on purchases up to 200 million won for bonds with maturities of five years or longer. Spread rates and compound interest apply when held to maturity, making the bonds well suited to investors looking to build long-term assets while managing their tax burden.
"In an environment of growing market volatility, a balanced asset allocation strategy that weighs both stability and returns has become more important than ever — more so than chasing short-term yields," a Mirae Asset Securities official said. "Retail government bonds combine government-backed security with long-term compounding and separate taxation benefits, making them an ideal choice for investors who want steady cash flow and a reliable source of retirement savings."
Mirae Asset Securities recently launched a retirement pension robo-wrap service available through individual retirement pension (IRP) accounts. The service uses a fully vetted robo-advisor to build a globally diversified asset allocation portfolio on behalf of customers and handle all actual trading based on market conditions. The company designed the service to relieve ordinary investors of the burden of monitoring timing and asset selection in their pension portfolios — given that long-term investment discipline is essential for retirement assets, yet difficult to maintain amid busy daily lives.
th5@heraldcorp.com
