Posted June. 29, 2011 08:43,
Updated January. 01, 1970 09:00
Korea will introduce next month a pension lottery that awards each winner an inheritable monthly payment of 5 million won (4,619 U.S. dollars) before taxes over a 20-year period.
The new lottery is part of the Korean government`s efforts to cope with the rapidly aging society by benchmarking similar lotteries in the U.S., Canada and Germany.
The Strategy and Finance Ministry`s lottery committee said Tuesday that the first drawing of the pension-style lottery is set for July 6. The name of the lottery, 520, is derived from the award of 5 million won in monthly payments for 20 years.
A person can buy up to 100,000 won (924 dollars) worth of the lottery tickets at 1,000 won (92 cents) each. Sale of a ticket is banned for those under age 19.
The top winner will receive 1.2 billion won (1.1. million dollars) in monthly payments of 5 million won for 20 years, followed by 100 million won (92,379 dollars) for the second prize winner, 10 million won (9,238 dollars) for third, 1 million won (924 dollars) for fourth, 200,000 won (185 dollars) for fifth, 2,000 won (1.85 dollars) for sixth, and 1,000 won (92 cents) for seventh.
The top award will be paid as monthly pension and is inheritable but cannot be transferred to a third person or offered as loan collateral. While the prize money for second to seventh place is less than that of the Korean lotteries Lotto or Popcorn, it will be paid in a lump sum.
The probability of winning 520 is one out of 3.15 million, or better odds than Lotto`s one out of 8.14 million. While prize month worth 300 million won (277,136 dollars) is subject to a tax rate of 33 percent, the winner of the 520 lottery will pay 22 percent since the prize money is 5 million won a month. The tax will be paid before payment.
Cable news network YTN will broadcast the drawing at 7:40 p.m. every Wednesday.
The Popcorn lottery will also be terminated after the final drawing Saturday. It started on April 30, 2006, as the successor to Housing Lottery, the nation`s first lottery.