Kiwoom Securities announced on July 18 that it is offering an equity-linked security (ELS) with a pre-tax annual return of 9.2%, based on the KOSPI200 Index and Samsung Electronics as underlying assets.
The newly launched "3517th Kiwoom ELS (Equity-Linked Security)" is a financial investment product with the KOSPI200 Index and Samsung Electronics common shares as its underlying assets. If certain conditions are met, it provides a maximum pre-tax annual return of 9.2%. The maturity is three years, and there is an early redemption opportunity every six months.
This early redemption-type ELS has early redemption evaluation dates at regular intervals. If, on any of these dates, the prices of all underlying assets are above the early redemption barrier, the product pays out returns and terminates. For this product, early redemption evaluation occurs every six months. The early redemption barriers are set in a step-down structure at 90%, 85%, 85%, 80%, 75%, and 70%, gradually decreasing at each evaluation.
The first early redemption barrier is 90%. If both underlying assets are at or above 90% of their initial reference price on the first early redemption evaluation date, the product is redeemed. If not, the prices of the underlying assets are checked again at the second early redemption evaluation date, six months later, to see if they are above the second early redemption barrier.
The knock-in barrier is the threshold at which losses may occur. For this product, the knock-in barrier is set at 50%. If the closing price of either the KOSPI200 Index or Samsung Electronics common shares falls by 50% or more from the initial reference price, the knock-in barrier is breached, and principal loss may occur. However, if neither underlying asset falls by 50% or more until maturity, the knock-in barrier is not breached, and the ELS is redeemed with a pre-tax annual return of 9.2%.
In addition to the "3517th Kiwoom ELS," Kiwoom Securities is currently offering a total of 27 different ELS products.
ELS products are high-risk financial investment products. To protect financial consumers, after subscription, there is a mandatory two-business-day cooling-off period, after which investors must reconfirm their intention to purchase before the transaction is finalized. This week, subscription for Kiwoom Securities ELS is open until 5:00 p.m. on July 21, and purchase confirmation must be completed by 1:00 p.m. on July 24. Kiwoom Securities ELS products are not sold offline and can only be subscribed to online via the HeroM S# (mobile app), HTS, or the Kiwoom Securities website.
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