Korea Investment & Securities, Two Online-Only Step-Down ELS Types

Korea Investment & Securities, a subsidiary of Korea Financial Group, announced on the 22nd that it will募集 two types of online-only equity-linked securities (ELS) products, each with a limit of 5 billion KRW.

True ELS Series 16052 is a 3-year maturity product based on the Hang Seng China Enterprises Index (HSCEI), Standard & Poor's (S&P) 500, and EUROSTOXX 50. Early redemption is determined every 6 months. If the underlying assets are at least 95% (6 months), 90% (12 months), 85% (18 and 24 months), 80% (30 months), and 75% (maturity) of the initial reference price, an annual return of 10% is paid and early redemption occurs.

True ELS Series 16053 is based on the US online shopping mall Amazon and the Standard & Poor's (S&P) 500. The maturity is 3 years, and redemption is assessed every 6 months. If the underlying assets are at least 85% (6 and 12 months), 80% (18 months), 75% (24 months), 70% (30 months), and 65% (maturity) of the initial reference price, an annual return of 9% is paid and redemption occurs.

Even if the early redemption conditions are not met for both products, if none of the underlying assets fall below 50% and 45% of the initial reference price during the investment period respectively, the agreed returns will be paid at maturity. However, if the assets fall below these thresholds, losses ranging from 25% to 100% and 35% to 100% of the principal may occur respectively.

The subscription period for general individual investors is until the 23rd. According to the investor cooling-off system, there will be a cooling-off period from the 24th to the 25th, and investors can confirm their subscription intention from the 26th until 10 a.m. on the 30th. For more details, please visit the Korea Investment & Securities website or the ‘Korea Investment’ app.