How to Invest
Choosing the Securities you Want to Buy
| Issuer | Ministry of Finance and Economy (MOFE) |
| Tenor | 3, 5, and 10 years |
| Currency | Korean won |
| Interest Payment | Fixed-rate coupon |
| Minimum Amount of Tender | KRW10,000 |
| Method of Sale in the Primary Market | Public offering via Dutch-style yield auction. |
| Who may bid | Resident and nonresident individual and institutional investors through custodian banks and foreign exchange banks. |
| Redemption | Bonds are redeemed at par upon maturity. |
| Taxation | Interest Income: 14% withholding tax. Combined taxes result in an effective rate of 15.4%. Capital Gains: Nonresidents are taxed 10% of gross proceeds or 25% of capital gains, whichever is lower. Residents are taxed 15%. Effective rates of 11%, 27.5% and 16.5%, respectively, as a result of combined taxes. Exemptions are given to foreign investors from countries with double taxation treaties. |
| Secondary Market Trading | Through the Korea Stock Exchange (KSE) and over-the-counter via securities firms. |
| Issuer | Korea National Housing Corporation |
| Tenor | 5 years |
| Currency | Korean won |
| Interest Payment | Fixed-rate coupon |
| Minimum Amount of Tender | KRW10,000 |
| Method of Sale in the Primary Market | Public offering via Dutch-style yield auction |
| Who may bid | Individuals and corporations that make real estate contracts are obligated to buy National Housing Bonds. Investors remit payments to the National Housing Fund which supports long-term, low interest loans for housing construction. |
| Redemption | Bonds are redeemed at par upon maturity. |
| Taxation | Interest Income: 14% withholding tax. Combined taxes result in an effective rate of 15.4%. Capital Gains: Nonresidents are taxed 10% of gross proceeds or 25% of capital gains, whichever is lower. Residents are taxed 15%. Effective rates of 11%, 27.5% and 16.5%, respectively, as a result of combined taxes. |
| Secondary Market Trading | Through KSE and over-the-counter via securities firms. |