Donghaeng Lottery CEO Hong Deok-ki mentioned the stability and soundness of the Pension Lottery 720+ and stated, “It is more advantageous than Lotto.”
On the 26th, the drawing site for the Pension Lottery 720+ was revealed at the new MBC building in Sangam-dong, Seoul. This event was organized to inform the public about the introduction of the Pension Lottery and the fairness and transparency of the drawing.
The Pension Lottery 720+ is a lottery issued by the Ministry of Economy and Finance's Lottery Commission and sold by Donghaeng Lottery. The drawing broadcast is live every Thursday at 7:05 PM on MBC, hosted by announcers Kim Tae-kyun and Lee Ji-ae. Similar to the Lotto drawing broadcast, it is conducted at the MBC new building with police from the Mapo Police Station and audience members present.
In 2023, amid controversies over Lotto drawing manipulation, Donghaeng Lottery publicly revealed the live drawing site for the first time in 20 years since the Lotto's issuance. The site was also revealed in 2024. However, this is the first time the drawing site for the Pension Lottery 720+ has been made public.
Before the drawing, CEO Hong Deok-ki explained the definition of a lottery, stating, “As specified in the Lottery and Lottery Fund Act, a lottery is the collection of money from many people to be paid to the winners.” He continued, “The proceeds from the lottery are used to enhance public welfare. The biggest purpose of the lottery is that the luck of winning returns to the purchaser, and that profit is utilized as a fund.”
In South Korea, lotteries began in 1948 as a sponsorship for the London Olympics. Since then, the types have diversified with instant lotteries in 1990, electronic lotteries in 2001, Lotto in 2002, and Spitto.
CEO Hong noted, “In the case of the Pension Lottery, purchasers cannot choose their numbers and must buy the numbers given at the sales point. About 80% of total lottery sales are from Lotto, while the Pension Lottery accounts for only 5%. The reason Lotto maintains high popularity is that purchasers can directly choose their numbers, and there is a strong expectation for high winnings.”
He added, “Lotto has no limit on the number of tickets issued, and the prize money can accumulate to high amounts. In contrast, the Pension Lottery has an annual limit of 520 billion won, with the first prize set at 1.68 billion won (approximately 2.1 billion won when purchasing a set of 5 tickets), and the second prize at 120 million won. The method of prize payment is also different. Lotto pays in a lump sum, while the Pension Lottery pays a fixed amount monthly for 20 years.”
In the past, the Pension Lottery had low sales rates due to the inconvenience of the sales method, the hassle of retrieving unsold tickets, and low purchasing convenience as it could not be purchased on the day of the drawing. Initially, it sold out when introduced in 2011, but the sales rate later dropped below 30%.
CEO Hong Deok-ki stated, “The probability of winning the first prize in Lotto is 1 in 8.14 million, while the first prize in the Pension Lottery is 1 in 5 million,” adding, “The Pension Lottery has low gambling characteristics, and the prize money is paid stably every month, making it easy to manage and causing fewer social issues. From a tax perspective, it is also advantageous; when purchasing a first prize set (5 tickets), you receive about 2.1 billion won over 20 years at 7 million won per month, with a tax rate of 22% applied.”
He continued, “The first prize amount in Lotto varies greatly depending on the round. Last year, the lowest first prize was 420 million won, and after taxes, the actual amount received was in the 200 million won range. However, there have been winners of up to 4 billion won, but that is not a stable amount.”
