Korea Investment & Securities Pursues Up to 47% Returns on ELS Upon Meeting Conditions

Korea Investment & Securities, a subsidiary of Korea Financial Group, announced on the 20th that it will launch 22 types of Equity-Linked Securities (ELS) and Equity-Linked Bonds (ELB).

'True ELS 16641' is a maturity rise booster type product based on Naver (NAVER). The maturity is 1 year, and the redemption decision is made once at the 4-month mark. If the underlying asset is 90% or more of the reference price, a 5.3% return is paid and early redemption occurs. Even if the early redemption condition is not met, if the maturity evaluation price is 100% or more of the initial reference price, 300% of the increase rate is paid as profit. If below, losses occur linked to the decline rate up to a maximum of 100% of the principal.

'True ELS 16635' is a step-down type product based on POSCO Holdings and the Standard & Poor's (S&P) 500. The maturity is 3 years, and redemption decisions are made every 3 months. If the underlying assets are 90% (3 months), 85% (6, 9, 12 months), 80% (15, 18, 21, 24 months), 75% (27, 30, 33 months), and 70% (maturity) or more of the initial reference price, an annual return of 11% is paid and early redemption occurs. Even if the early redemption condition is not met, if no underlying asset has fallen below 50% of the initial reference price during the investment period, the contracted return is paid at maturity. If it falls more than 50%, losses ranging from 30% to 100% of the principal may occur.

'True ELB 1940', based on Tesla, is a principal-protected rise knock-out type product. The maturity is 1 year, and if the underlying asset remains within the range of over 100% and up to 147% of the initial reference price, a maximum return of 47% is paid and redemption occurs. If the underlying asset goes out of the condition range even once during the investment period, only the principal is repaid. This is an online-exclusive product available through the mobile app ‘Korea Investment’ and the Home Trading System (HTS).

The subscription period for general individual investors is from the 20th to the 21st. According to the investor cooling-off system, there is a cooling-off period from the 22nd to the 23rd, and subscription intentions can be confirmed from the 24th until 10 a.m. on the 27th. Detailed information can be found on the Korea Investment & Securities website and the ‘Korea Investment’ app.