Mirae Asset Securities (006800.KS) is conducting a July subscription for individual savings treasury bonds targeting retail investors.
According to Mirae Asset Securities on Tuesday, the subscription runs from that day through July 14 over five business days, excluding public holidays. The subscription period was originally set for July 9 to 15, but the schedule was moved up by one day after Constitution Day was designated a public holiday.
Subscriptions can be submitted at branches nationwide and through the mobile trading system (MTS) "M-STOCK" from 9 a.m. to 4 p.m. The total issuance amount is 160 billion won, down 40 billion won from 200 billion won the previous month. By maturity, the issuance comprises 3 billion won in 3-year coupon bonds, 7 billion won in 3-year compound-interest bonds, 60 billion won in 5-year bonds, 70 billion won in 10-year bonds, and 20 billion won in 20-year bonds. In particular, more than 80% of the total volume was allocated to the 5-year and 10-year bonds favored by investors, reflecting demand for mid- to long-term investment.
The additional interest rates are 0% for 3-year bonds, 0.05% for 5-year bonds, 0.6% for 10-year bonds, and 0.65% for 20-year bonds. When held to maturity, the total pre-tax return stands at 12% for 3-year coupon bonds, 12.48% for 3-year compound-interest bonds, 22.22% for 5-year bonds, 58.52% for 10-year bonds, and 162.8% for 20-year bonds.
Individual savings treasury bonds are savings-type government bonds issued by the government to individuals, a long-term investment product that combines stability with tax benefits. When held to a maturity of five years or more, annual compound interest combining the coupon rate and the additional rate is applied, and investors can receive separate taxation benefits within a purchase limit of 200 million won.
Early redemption is possible after one year from issuance (in the 13th month), but in this case only interest based on the coupon rate is paid, and compound interest and separate taxation benefits are not available. The 3-year bonds are divided into compound-interest bonds and coupon bonds, but are excluded from separate taxation. Compound-interest bonds pay the compounded interest and principal in a lump sum at maturity. Coupon bonds pay regular interest once a year during the holding period, and pay the principal, regular interest, and additional interest at maturity.
Interest in individual savings treasury bonds has continued this year. Through June this year, cumulative subscriptions reached 2.01 trillion won against an offering amount of 1.1 trillion won, recording a competition ratio of 1.83 to 1.
"In long-term asset management, it is important to hold risk assets and safe assets in balance," a Mirae Asset Securities official said. "Individual savings treasury bonds are establishing themselves as a representative investment vehicle suited to such asset allocation demand."
