Shinhan Bank will begin selling retail government bonds through defined contribution (DC) and individual retirement pension (IRP) accounts.

Shinhan Bank said on Sept. 8 it will sell 10-year and 20-year retail government bonds to retirement pension customers from Sept. 9.

Shinhan Bank DC and IRP customers can subscribe using existing retirement pension accounts without opening a separate account dedicated to retail government bonds. They can apply through Shinhan Super SOL or at branches.

The first subscription period runs from Sept. 9 to 15. The minimum subscription amount is 100,000 won, and customers can apply in 100,000-won increments.

Retail government bonds are government-issued bonds aimed at supporting individuals' long-term asset building. If held to maturity, interest equal to the coupon rate plus an additional rate is applied with annual compounding.

When investing through a retirement pension account, taxation on investment gains is deferred and pension income tax applies when the pension is received, allowing investors to benefit from the tax incentives of retirement pension accounts. If redeemed early, the additional rate and annual compounding benefits do not apply.

To mark the launch, Shinhan Bank will also run an event during the first subscription period, offering mobile coffee coupons by lottery.

A Shinhan Bank official said, "It is important for retirement pensions not only to accumulate reserves but also to manage assets over the long period until retirement." The official added, "We will broaden long-term asset management options through the sale of retail government bonds."