Targeting IPO Investors in the Second Half of the Year... KB Securities Launches Special Short- and Mid-Term Products

Preparation of Commercial Paper, Public Offering Funds, and Wrap Products

[Asia Economy Reporter Minwoo Lee] KB Securities will launch special promotional products such as issuance notes that are convenient for medium- to short-term fund management for customers aiming for large-scale public offering subscriptions in the second half of the year.

KB Securities announced on the 27th that it will release special promotional products such as the 'KB Able Issuance Notes.'

The 'KB Able Issuance Notes' have been on sale since last month as a special promotional product. They offer yields of 2.2% per annum (pre-tax) for 3-month notes and 2.3% per annum (pre-tax) for 6-month notes, available on a first-come, first-served basis until the limit is reached. The minimum subscription amount per product is 10 million KRW, and the maximum subscription amount is 300 million KRW. The maximum subscription limit per person is 300 million KRW combined for both 3-month and 6-month notes. New customers who did not have an account with KB Securities until April and dormant customers whose average total assets were less than 100,000 KRW over the past year as of the end of the month prior to the purchase date of this product are eligible to subscribe.

In addition, KB Securities has prepared special promotional bank bonds (credit rating AAA) with maturities of 3 to 6 months and special promotional electronic short-term bonds (A1 rating) with a 3-month maturity, which guarantee smooth liquidity and convertibility, to be tradable from July 29, the refund date of Kakao Bank subscription, at market interest rate + α. These special promotional bonds can be traded on a first-come, first-served basis until the limit is reached by customers who subscribed to public offerings through KB Securities and are either new customers without an account at KB Securities until last year or dormant customers whose average total assets were less than 100,000 KRW over the past year as of the end of the month prior to the purchase date of this product. However, trading is only possible through KB Securities branches.

Furthermore, KB Securities has prepared the 'KB Able Account Customized Bond Wrap (maturities of 3 months and 6 months),' managed by KB Securities investment experts through bond-type funds investing in bonds, (AB)CP, and short-term notes, as well as a 'Public Offering Investment Fund' that allows relatively small investments in the public offering market indirectly. Detailed information about these special promotional products can be found on the KB Securities website or through the mobile trading system (MTS) 'Marvel' and the home trading system (HTS) 'Hable.'

Lee Hong-gu, Head of WM Division at KB Securities, said, "In anticipation of mega initial public offerings (IPOs) in the second half of the year, we have prepared various investment products that pursue market interest rate + α returns with relatively low volatility." He added, "We will do our best to help customers who join KB Securities through public offering subscriptions achieve successful asset management in a continuous low-interest-rate environment."