Kiwoom Securities Sells New Global ELS with Knock-in Barrier Below 30%

Kiwoom Securities announced on the 20th that it will sell the last ELS (Equity-Linked Securities) of the year.

The underlying assets of the six Kiwoom New Global 100 Trillion ELS (issues 1321 to 1326) being sold this time are popular U.S. stocks such as Tesla, Nvidia, and AMD. These stocks have recently experienced rapid price increases, raising concerns about potential price declines. Accordingly, Kiwoom Securities has lowered the knock-in barrier for three of the six Kiwoom New Global 100 Trillion ELS issues to 25%, and for the other three to 30%.

The knock-in barrier is the threshold for principal loss. If the price of the underlying asset falls below this knock-in barrier, it is considered that the knock-in barrier has been touched, and from that point, there is a possibility of principal loss. For products with a 25% knock-in barrier, the barrier is touched when the underlying asset price falls to -75% of the initial reference price, and for products with a 30% knock-in barrier, it is touched when the underlying asset price falls to -70% of the initial reference price, marking the start of potential principal loss. All else being equal, the lower the knock-in barrier in an ELS, the lower the possibility of principal loss.

Since ELS are high-risk financial investment products with the risk of principal loss, investors must confirm their intention to subscribe again after a two-business-day cooling-off period following the subscription. This week’s Kiwoom Securities ELS subscription period ends at 5 p.m. on the 23rd, and the confirmation of subscription intention must be completed by 1 p.m. on the 27th.

The Kiwoom New Global 100 Trillion ELS series uses stocks with a market capitalization of over 100 trillion won as underlying assets. Other ELS products besides the New Global ELS are also being sold. Five ELS issues (issues 3241 to 3245 Kiwoom ELS) with underlying assets consisting entirely of stock indices have knock-in barriers of 40% or 45%, and the ELS issue 3246 Kiwoom ELS, which has underlying assets of stock indices and domestic stocks, has a knock-in barrier of 35%.