"Principal Protection Even If Underlying Assets Perform Poorly"…Hana Bank Launches ELB for Retirement Pensions

13.2% Annual Payment Upon Condition Fulfillment at Maturity
0.5% Annual Return Even If Conditions Are Not Met

[Asia Economy Reporter Minwoo Lee] Hana Bank has launched an equity-linked bond (ELB) product that preserves the principal even if the underlying assets it tracks decline, targeting retirement pension customers.

Hana Bank announced on the 14th that it has launched this type of 'principal-protected pursuit ELB' product.

This product's returns are determined based on the KOSPI 200 and Euro Stoxx 50 indices. On the evaluation date, the two indices are compared with the index at the subscription time (initial reference price), and if predetermined conditions are met, returns are paid.

The product has a maturity of three years but allows early redemption annually based on conditions. If the underlying asset prices on the early redemption evaluation date or maturity date are all above the initial reference price, an annual 4.4% is paid. If conditions are met on the early redemption evaluation date one year after subscription, 4.4% is paid; if met after two years, 8.8%; and if met at maturity, 13.2% is paid.

Additionally, even if market conditions are unfavorable and the indices decline, failing to meet the payment conditions, the principal is still paid. This is because 0.5% is paid even if conditions are not met at maturity.

With recent interest rate hikes and increased volatility due to the Ukraine situation, this product is expected to appeal to customers reluctant to invest directly in the stock market, as it offers higher returns compared to regular deposits while preserving principal at maturity.

New retirement pension subscribers as well as existing defined contribution (DC), defined benefit (DB), and individual retirement pension (IRP) users can subscribe. The minimum subscription amount is 5 million KRW, and applications can be made at all Hana Bank branches until the 17th.

Kim Misook, Head of Hana Bank's Pension Business Division, stated, "With continuous new product development and systematic infrastructure establishment, we will become the number one retirement pension bank that rewards customers with better returns."

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