KB Securities adds retail government bonds to pension investment lineup

KB Securities will allow customers to invest directly in retail government bonds through their defined-contribution pension and individual retirement pension accounts, expanding the range of long-term investment options available for retirement savings.

The brokerage said Friday it had launched a trading service for pension-type retail government bonds.

The product lets retail investors buy 10-year and 20-year retail government bonds through their DC or IRP accounts. Retail government bonds are savings-type bonds introduced to broaden the government bond investor base and support individuals in building stable long-term assets.

Both the 10-year and 20-year bonds are issued in principle on the 20th of each month, with subscriptions open for seven business days before the issuance date. If the issuance date falls on a non-business day, the bonds are issued on the preceding business day.

The first subscription window runs from Sept. 9 through Sept. 15, with issuance scheduled for Sept. 18. Customers can apply by visiting a KB Securities branch or through the mobile trading system (MTS) KB M-able.

Investors who hold the bonds to maturity receive interest calculated on a compound annual basis at the face rate plus a bonus rate. Early redemption is available after one year, or sooner under circumstances specified by law. However, early redemption forfeits the bonus rate, with only the face rate applied on a simple-interest basis.

KB Securities has also been stepping up efforts to attract pension customers alongside its product expansion. In April, it ran a promotion for IRP and pension savings account holders that counted personal contributions, transfers from other firms, and ISA maturity rollovers toward net deposit totals — with transfers from rival pension providers counted at double value. Pension savings customers could receive department store gift certificates worth up to 2 million won ($1,470), depending on their net deposit tier.

KB Securities said it plans to support customers in building pension portfolios tailored to their risk appetite and retirement timeline by adding retail government bonds to its existing pension investment lineup. "The introduction of pension-type retail government bonds gives customers a wider range of options for managing their retirement assets in line with their investment preferences and retirement plans," a company official said. "We will continue to expand our pension services by staying ahead of customers' needs and providing practical support for retirement asset management."