Eugene Investment & Securities Launches Monthly-Payment Early Redemption ELS Offering

[Asia Economy Reporter Minji Lee] Eugene Investment & Securities announced on the 22nd that it will offer a total of 2 billion KRW worth of monthly payment early redemption type ELS 1 series through public offering until 2 PM on the 24th.

The ‘354th ELS’ being offered this time is based on Samsung Electronics common stock, the Standard & Poor's 500 Index (S&P500), and the EUROSTOXX50 Index. It is a 3-year maturity step-down type principal non-guaranteed product with a maximum pre-tax coupon yield of 7.11% per annum.

The ‘354th ELS’ follows a monthly payment structure, where if the closing prices of all underlying assets are at least 60% of the initial reference price on the monthly predetermined profit payment evaluation date, investors receive a pre-tax monthly return of 0.5925% (maximum annual 7.11%). However, if the condition is not met, the monthly profit may not be paid.

Early redemption and maturity redemption opportunities occur every 6 months. Specifically, on the early redemption evaluation dates, if the closing prices of all underlying assets are at least 90% of the initial reference price (at 6 and 12 months), 85% (18 months), 80% (24 months), or 75% (30 months), early redemption is executed and investors receive their principal back. On the maturity evaluation date, if the closing prices are at least 70% (36 months), the maturity redemption condition is met, and principal repayment is made.

Due to the knock-in structure (knock-in barrier at 50%), even if the closing prices of the underlying assets on the maturity evaluation date are below 70% of the initial reference price, as long as none of the underlying assets have fallen below 50% of the initial reference price until the maturity evaluation date, maturity redemption occurs and the principal can be recovered. If these conditions are not met, principal loss will occur. The minimum subscription amount is 1 million KRW or more (increasing in increments of 100,000 KRW).

Kim Kyuhwan, Head of Financial Products at Eugene Investment & Securities, said, “The 354th ELS is a suitable product for customers who want to receive fixed monthly returns according to the monthly payment structure.”

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