The Ministry of Economy and Finance plans to issue 100 billion KRW worth of Korea Savings Bonds in February.

The issuance limits for February by bond type are set at 80 billion KRW for the 10-year bond and 20 billion KRW for the 20-year bond, considering the annual issuance plans and sales performance. The coupon rates will be based on the winning bid rates of the same-term Korea Treasury Bond issued in January (2.840% for the 10-year bond and 2.770% for the 20-year bond), with an additional spread determined by market conditions: 0.35% for the 10-year bond and 0.5% for the 20-year bond.

^* Applicable interest rate for bonds held to maturity: 3.190% for the 10-year bond and 3.270% for the 20-year bond.

The subscription period is from February 13 (Thursday) to February 17 (Monday), and subscriptions can be made on business days between 09:00 AM and 3:30 PM. Individual investors who wish to purchase these bonds can apply during the subscription period by visiting the sale agency’s branches or through online channels^* such as the agency’s website or mobile app.

^* Securities.miraeasset.com or Mirae Asset’s mobile application

^* Please refer to the Appendix of the attached ‘Government Bonds Issuance Plan for Individual Investors, February 2024’ Korean Ver.

If the total subscription amount remains within the monthly issuance limit for each bond type, the full requested amount will be allocated. However, if the total subscription amount exceeds the monthly issuance limit, an initial allocation of up to 3 million KRW per investor will be made. Any remaining bonds will then be distributed proportionally based on the subscription amount. The allocation results will be announced on the next business day after the subscription period ends.

For reference, the pre-tax maturity yields for the February Korea Savings Bonds is approximately 37% for the 10-year bond (with an average annual yield of 3.7%) and 90% for the 20-year bond (with an average annual yield of 4.5%).

^* The maturity yield is calculated by applying compound interest annually to the coupon rate plus the additional spread.

Please refer to the attached files.