South Korean banks and brokerages launch retirement pension bond subscriptions

individual savings bonds retirement pension DC accounts IRP accounts government bonds

Financial institutions in South Korea have begun offering individual savings bonds through Defined Contribution (DC) and Individual Retirement Pension (IRP) accounts. This expansion allows retirement pension holders to invest in 10-year and 20-year government bonds, providing a new stable asset option alongside traditional products like time deposits.

Participating institutions include Shinhan Bank, Hana Bank, NH Nonghyup Bank, Mirae Asset Securities, Samsung Securities, Korea Investment & Securities, KB Securities, and NH Investment & Securities. The September subscription period runs from September 9 to September 15, with a minimum investment of 100,000 KRW.

These bonds offer compound interest benefits when held to maturity, combined with surface interest rates and additional premiums. Utilizing retirement pension accounts provides further tax advantages, such as tax deferral on investment income until funds are withdrawn and preferential pension income tax rates upon retirement. However, early redemption is permitted after one year but results in the loss of additional premiums and compound interest benefits.