Korea Investment & Securities Lists 560 New ELW Items

Korea Investment & Securities, a subsidiary of Korea Financial Group, announced on the 17th that it will newly list 560 types of Equity-Linked Warrants (ELWs) (stock numbers 57K001 to 57K560).

The listed items include 240 index-type ELWs based on KOSPI 200 and KOSDAQ 150, and 320 stock-type ELWs based on underlying assets such as Samsung Electronics, SK Hynix, and POSCO Holdings.

ELWs are products that trade the rights to buy or sell individual stocks or stock indices at a predetermined price on the expiration date. If an increase in the underlying asset is expected, investors can purchase call ELWs; if a decrease is expected, they can purchase put ELWs to gain profit opportunities regardless of market conditions.

However, unlike stocks, ELWs have an exercise price that the underlying asset must reach by expiration. If the underlying asset price does not move in the initially expected direction, investors may incur a total loss of the principal at expiration.

To trade ELWs, an investment propensity diagnosis and completion of prior investor education are required. Additionally, new customers must meet a minimum basic deposit of 15 million KRW. For more details, please visit the Korea Investment & Securities ELW dedicated website and KakaoTalk channel.