Gyeonggi Province Regional Development Bonds: Principal and Interest Deposited Directly to Account Upon Maturity Without Bank Visit

[Suwon Ilbo=Reporter Park No-hun] Starting this year, holders of Gyeonggi Province regional development bonds can receive principal and interest directly into their own accounts without having to visit a bank when bonds mature.

Gyeonggi Province announced on the 2nd that it has introduced a system whereby bond holders can access NH Nonghyup Bank's internet banking and receive principal and interest redemption into their own accounts on the bond redemption date.

Regional development bonds are issued by local governments to enhance resident welfare and secure funds for regional development projects. They are mandatory purchases when registering new or transferred automobiles, obtaining other permits and registrations, and executing various contracts.

Previously, bond holders had to visit the financial institution where they purchased the bonds after five years of purchase to claim principal and interest for redemption.

If not claimed within the deadline, the bonds revert to Gyeonggi Province. The statute of limitations for bonds is 10 years for principal and 5 years for interest from the redemption start date (five years after purchase).

Through the implementation of the bond online redemption system, bond purchasers can apply for principal and interest redemption into their accounts via NH Nonghyup Bank's internet banking (utility payments-regional development bonds-unclaimed bonds inquiry/redemption), eliminating the need to separately visit a financial institution to claim redemption.

The bond online redemption system applies only to individually-issued bonds where more than five years have passed since bond purchase as of the claim date and the statute of limitations has not yet expired.

A Gyeonggi Province official stated, “Since holders must wait five years until bond maturity, approximately 70% of bonds are sold immediately after purchase,” and added, “With this system improvement, the redemption process becomes more convenient, and bond holders now have a wider range of choices—whether to immediately resell or wait five years to receive principal and interest.”