Kiwoom Securities Sells ELS Based on Tesla and S&P 500 Assets

Kiwoom Securities announced on the 28th that it will sell a knock-in barrier 25% ELS (Equity-Linked Securities) based on Tesla stock price and the S&P 500 index.

Kiwoom Securities' 1290th New Global 100 Trillion ELS has a knock-in barrier of 25%, a maturity of 3 years, and early redemption opportunities every 6 months. If both underlying assets, Tesla and the S&P 500 stock prices, have never fallen below 25% of their initial reference prices, investors will receive a pre-tax annual return of 12.7% upon early redemption or maturity redemption. The minimum subscription amount is 1 million KRW, and the total subscription limit is 5 billion KRW.

If either of the two underlying assets, Tesla or the S&P 500, falls more than 75% from the initial reference price, triggering a knock-in barrier touch and early redemption does not occur, the profit or loss will be determined based on the evaluation price at maturity. If the stock prices recover so that both underlying assets’ maturity evaluation prices are at least 65% of the initial reference price, a pre-tax return of 38.1% (12.7% per annum) will be paid. However, if even one asset’s maturity evaluation price is below 65% of the initial reference price, principal loss will occur proportional to the largest decline among the underlying assets.

For ELS with a principal loss threshold called the knock-in barrier, if the underlying asset’s price falls below this barrier, the possibility of principal loss arises from that point, which is referred to as a "knock-in barrier touch." If ELS products have the same underlying assets, structure, issue date, and target return, a product with a lower knock-in barrier is more advantageous to investors. A product with a 25% knock-in barrier triggers a knock-in barrier touch when the underlying asset price falls to -75% of the initial reference price. A product with a 50% knock-in barrier triggers the possibility of principal loss when the underlying asset price falls to -50% of the initial reference price.

ELS (Equity-Linked Securities) are high-risk, complex financial investment products, so general investors must carefully consider for 2 business days. The Kiwoom Securities ELS currently on sale requires subscription by 5 PM on Monday, December 2, and confirmation of subscription intention by 1 PM on Thursday, December 5. As an online product, it can be purchased via the Kiwoom Securities website, the YoungwoongmunS# mobile app, or HTS.