U.S. Treasuries are a safe asset offering annual interest rates of approximately 3–4%. Korean investors can easily access them through three methods: using the overseas bond menu on brokerage platforms, purchasing after opening a dollar-denominated deposit account, or utilizing exchange-traded funds (ETFs). Today, as of October 2, 2026, we will outline the actual trading procedures and precautions, accompanied by relatable examples. We will share tips to help you get started immediately without complex procedures.
Practical Guide to Investing in U.S. Treasuries for Beginners in 2026: 5 Essential Steps to Boost Returns
1. What Are U.S. Treasuries and Why Are They Attracting Attention?
U.S. Treasuries are bonds issued by the U.S. government, with maturities ranging from 1 to 30 years. While prices drop when interest rates rise, interest payments remain consistent, resulting in relatively low volatility. Recently, as U.S. interest rates have risen, demand for safe assets has increased, and many investors are turning to them for dollar asset diversification. Although Korean investors face exchange rate risks, combining U.S. Treasuries with dollar deposits can help mitigate these risks. Key point: U.S. Treasuries offer two main advantages: stable interest income and the acquisition of dollar assets.
2. Three Practical Ways to Buy U.S. Treasuries from Korea
The first method is using the overseas bond menu on brokerage platforms. You can search for overseas bonds on apps like Kiwoom Securities or NH Investment & Securities, check the desired maturity and interest rate, and place an order in Korean won; the system will automatically convert to dollars and execute the purchase. The second method involves opening a dollar-denominated deposit account and directly purchasing U.S. Treasuries through it. Brokers like Mirae Asset Daewoo Securities or Samsung Securities offer dollar-specific accounts where you can deposit funds and place orders based on real-time market prices. The third method is buying exchange-traded funds (ETFs) that track U.S. Treasuries. Funds like TLT or IEFA can be bought and sold on domestic brokerage platforms just like regular stocks, simplifying the currency exchange process. Key point: Choose the method that best fits your investment style among the brokerage overseas bond menu, dollar deposit accounts, and ETFs.
3. Fees and Tax Checklist
When purchasing overseas bonds, brokerage transaction fees are typically around 0.15% of the transaction amount, with some firms applying a minimum fee of 5,000 KRW. Exchange rate discounts vary by brokerage when converting from dollar deposits, so it is essential to check in advance. U.S. Treasury interest is subject to a 15% U.S. withholding tax, but the actual burden is reduced due to foreign tax credits available under the Korea-U.S. tax treaty. Additionally, a 15% local income tax is applied to interest income in Korea, which must be reflected in tax filings. Key point: By calculating transaction fees, exchange costs, and tax deductions in advance, you can accurately predict your net return.
4. Practical Checklist to Start Immediately
First, open your brokerage app and check if it has an overseas bond menu. If not, proceed with the process of opening a dollar-specific account. Next, determine the maturity that aligns with your investment goals; consider 1–3 year bonds for short-term goals and 10+ year bonds for long-term goals. Finally, it is advisable to make a small test purchase; for example, buy 1 million KRW worth of bonds and monitor the changes in returns, fees, and taxes for one month. This allows you to experience the procedures and costs before investing a large amount. Key point: By following the sequence of checking your account, selecting a maturity, and making a small test purchase, you can start investing in U.S. Treasuries without mistakes.