DC, IRP accounts eligible for 10-, 20-year bonds from Wednesday

[Created using ChatGPT]
[Created using ChatGPT]

Shinhan Bank said Tuesday it will begin selling 10-year and 20-year individual investor government bonds through defined contribution and individual retirement pension accounts starting Wednesday, allowing retirement pension holders to purchase the bonds directly through their existing accounts.

Customers with DC or IRP accounts at Shinhan Bank can subscribe through the Shinhan Super SOL app or at a branch without opening a separate dedicated account. The first subscription window runs from Wednesday through Sept. 15, with a minimum investment of 100,000 won ($74) in increments of 100,000 won.

Individual investor government bonds are issued by the government to support long-term asset accumulation for individuals. Investors who hold the bonds to maturity receive the face rate plus a bonus rate, compounded annually. Investing through a retirement pension account also unlocks tax benefits — returns are tax-deferred during the accumulation phase and taxed as pension income upon withdrawal. However, early redemption forfeits both the bonus rate and the compound interest benefit, so investors should review the terms before subscribing.

To mark the launch, Shinhan Bank will hold a promotional event for DC and IRP customers during the first subscription period. A total of 700 customers allotted bonds through the subscription will be selected by lottery to receive mobile coffee coupons — 400 customers who subscribe 100,000 won or more will receive one coupon each, while 300 customers who subscribe 3 million won or more will receive two coupons each.

Shinhan Bank's retirement pension reserves stood at 58.89 trillion won as of the end of the second quarter this year, ranking first among all retirement pension providers in the country.

"Retirement pensions are about more than accumulating savings — what matters is how assets are managed over the long term leading up to retirement," a Shinhan Bank official said. "Through the sale of individual investor government bonds, we aim to broaden customers' long-term asset management options and offer products and services tailored to their retirement timelines and financial plans."


forest@heraldcorp.com