Korea Investment & Securities Launches Online-Only ELS with Enhanced Redemption Potential

[Asia Economy Reporter Junho Hwang] Korea Investment & Securities, a subsidiary of Korea Financial Group, announced on the 21st that it will raise up to 5 billion KRW for the online-exclusive step-down type 'TRUE ELS 14625' based on KOSPI 200, Standard & Poor's (S&P) 500, and EUROSTOXX 50 until the 28th.

This product has a 3-year maturity step-down structure with redemption observations every 3 months. If the underlying asset price is at or above 95% of the initial reference price at 3, 6, and 9 months; 90% at 12, 15, and 18 months; 85% at 21, 24, and 27 months; 80% at 30 months; 75% at 33 months; and 70% at maturity, it pays an annual return of 6.3% and redeems. It features twice as many observation points compared to general products that observe redemption every 6 months, increasing the possibility of early redemption.

Even if the redemption conditions are not met until maturity, if the underlying asset price has never fallen below 55% of the initial reference price during the investment period, it provides a total return of 18.9% (annual 6.3%) at maturity. However, if the underlying asset price has fallen below 55% of the initial reference price at any time and the evaluation price at maturity is below 70% of the initial reference price, there is a possibility of loss up to 100% of the principal.

General individual investors can apply for subscription over two days from the 21st to the 22nd. Following this, there is a cooling-off period until the 24th according to the investor cooling-off system, and subscriptions must be finalized through branches or the ‘Korea Investment’ app from the 27th until 10 a.m. on the 28th.

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