[Asia Economy Reporter Junho Hwang] Korea Investment & Securities, a subsidiary of Korea Financial Group, announced on the 29th that it will raise up to 20 billion KRW for the online-exclusive non-knock-in step-down type 'TRUE ELS 14413' until October 7.
This product is a 3-year maturity structured product based on HSCEI, S&P 500, and EUROSTOXX 50. The underlying asset prices are observed every 6 months, and if they are at least 80% (6 months), 80% (12 months), 80% (18 months), 80% (24 months), 75% (30 months), and 60% (36 months) of the initial reference price, an annual return of 4.8% is paid and the product is redeemed.
If at maturity any of the underlying assets fall below 60% of the initial reference price, principal loss will occur. In case of unmet conditions, principal loss ranging from -40% to -100% may occur based on the asset with the largest decline.
The non-knock-in step-down structure has relatively lower principal loss risk compared to other ELS products. There is no possibility of principal loss during the investment period (no knock-in condition), and principal loss is only observed at maturity.
The subscription period for individual general investors is from the 29th to the 30th. After a cooling-off period until October 5, the subscription intention must be confirmed by 10 a.m. on the 6th and 7th. Subscription confirmation can be made through Korea Investment & Securities.
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