South Korea to Allow Investment in National Bonds via Retirement Accounts Next Month

Starting next month, South Korea will open a new avenue for citizens to invest in national bonds through their retirement pension accounts. The Ministry of Economy and Finance announced that the system for retirement pension-type individual investment-purpose national bonds is complete and will be available from September.

This initiative allows individuals to purchase 10-year and 20-year national bonds via their Defined Contribution (DC) or Individual Retirement Pension (IRP) accounts. Those interested must submit their applications between September 9 and 15. Initially, investment will be limited to specific financial institutions, including Shinhan Bank, Hana Bank, NH Nonghyup Bank, and five major securities firms: Mirae Asset, Samsung, Korea Investment, KB, and NH Investment. However, the ministry plans to expand availability to other financial institutions later.

Individual investment-purpose national bonds have been available since 2024, but investment through retirement pension accounts was not previously possible. The government anticipates that this new product will contribute to the formation of retirement assets for the public.

"The introduction of these individual investment-purpose national bonds will expand the operational choices for people's retirement pensions and enhance the stability and profitability of their retirement assets," stated Huh Jang, the Second Vice Minister of Economy and Finance, at an event marking the system's launch. The move aims to provide more secure and potentially profitable options for citizens planning for their later years.

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The introduction of these individual investment-purpose national bonds will expand the operational choices for people's retirement pensions and enhance the stability and profitability of their retirement assets.