KB Securities Offers Online-Only ELS Providing Up to 17% Annual Pre-Tax Returns

[Asia Economy Reporter Oh Ju-yeon] KB Securities announced on the 11th that it is recruiting two types of online-exclusive ELS, including 'KB able ELS 1281' (1-year maturity, early redemption every 3 months), which offers a maximum annual pre-tax return of 17.0% upon early redemption and provides returns based on the rise of underlying assets at maturity, until the 14th.

KB able ELS 1280 (2-stock principal non-guaranteed (90% partial principal payment)) is based on Samsung Electronics common stock and NAVER common stock as underlying assets. It has a 1-year maturity with early redemption opportunities every 3 months, and if the underlying assets are above the initial reference price on the early redemption evaluation date, it offers a maximum annual pre-tax return of 8.0%.

KB able ELS 1281 (2-stock principal non-guaranteed (80% partial principal payment)) is based on Samsung Electronics common stock and NAVER common stock as underlying assets. It has a 1-year maturity with early redemption opportunities every 3 months, and if the underlying assets are above the initial reference price on the early redemption evaluation date, it offers a maximum annual pre-tax return of 17.0%.

Furthermore, if these two products are not redeemed early, returns at maturity depend on the stock prices of the underlying assets, with returns paid based on the stock with the smaller increase rate among the two underlying assets. Conversely, even if losses occur due to a decline in the underlying asset prices, the maximum loss on the principal is limited to 10% and 20%, respectively, minimizing the burden of losses, which is the biggest feature of these two products.

These products have the same underlying assets and product types, but offer different returns depending on the maximum loss level, allowing customers to choose products according to their risk tolerance. Moreover, as online-exclusive ELS, the minimum subscription amount starts from 100,000 KRW and can be invested in units of 10,000 KRW, enabling first-time non-face-to-face customers to invest small amounts without burden. (However, allocation will be proportionally adjusted if the subscription amount is exceeded)

Ha Woo-sung, head of M-able Land Tribe, which oversees KB Securities’ online investments, said, "Due to the impact of COVID-19, the stock market sharply declined, and the number of non-face-to-face customers has significantly increased, mostly customers seeking high returns through direct stock investments." He added, "However, while stock investments can yield high returns, losses must be fully borne when stock prices fall. Therefore, we suggest customers diversify their investments across various financial products rather than investing all funds in stocks."

He continued, "KB Securities continuously launches online-exclusive ELS that limit losses while selecting promising stocks with high interest from non-face-to-face investors, providing an effect similar to stock investments. We hope beginner investors and those unfamiliar with stock investments use these products to limit losses while investing." He also said, "We recently opened the Prime Center, where professional staff provide consultations on all investments including financial products and stocks for non-face-to-face investors’ concerns and questions, so we encourage active use."

This content was produced with the assistance of AI translation services.