Kiwoom Securities Sells ELS Based on US Stock Underlyings

[Asia Economy Reporter Oh Ju-yeon] Kiwoom Securities announced on the 14th that it will launch six types of equity-linked securities (ELS) with various underlying assets and structures, including US stocks, domestic stocks, and global stock indices, expanding investors' choices, and is currently accepting subscriptions.

ELS are financial investment products based on stock indices or stocks as underlying assets, which are redeemed with profits if the underlying asset prices meet pre-agreed conditions, and incur losses if the conditions are not met.

The products Kiwoom Securities is selling this week include a total of six types: five step-down early redemption ELS with maturities of 1 to 3 years and knock-in barriers of 45% to 55%, and one booster call early redemption ELS with a maximum loss limited to -10%.

First, Kiwoom's "New Global 100 Trillion 50th ELS" is a product with a 1-year maturity and early redemption opportunities every three months, with an expected pre-tax annual return of 27%. The underlying assets consist entirely of large-cap companies with market capitalizations exceeding 100 trillion won. This week's product's underlying assets are two common stocks: Tesla and Starbucks. If the prices of both underlying assets are at least 90% (at 3 and 6 months), 85% (at 9 months), and 75% (at 12 months) of the initial reference price, the product is early redeemed with a pre-tax annual return of 27%. Even if early redemption does not occur, if during the investment period the underlying asset prices never fall below 45% of the initial reference price, the product is redeemed at maturity with a pre-tax return of 27%. However, if the price of any underlying asset falls below 45% of the initial reference price at any time, principal loss may occur.

Kiwoom's "No. 1351 ELS" is a principal-protected product with a maximum possible loss limited to -10%. It has a 1-year maturity with early redemption opportunities every three months. If the prices of the underlying assets, SK Hynix common stock and SK Innovation common stock, are at least 100% of the initial reference price (at 3, 6, and 9 months), the product is early redeemed with a pre-tax annual return of 14.1%. If early redemption does not occur, at maturity, if the underlying assets have risen compared to the initial reference price, the profit is paid accordingly; if they have fallen, losses occur proportionally. However, even if the underlying assets fall more than -10%, the loss rate is capped at -10%. The conditions are based on the underlying asset with the smaller rate of increase among the two.

Additionally, there are two ELS products composed solely of stock indices such as S&P 500, HSCEI, EuroStoxx 50, and NIKKEI 225, and two ELS products including large domestic and foreign stocks such as Samsung Electronics, Shinhan Financial Group, AMD, and Bank of America, totaling six products currently on sale. Subscription closes at 1 PM on the 15th.

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