KB Securities Offers Special Brokerage-Type ISA ELB with 4.0% Pre-Tax Annual Return

On August 4, KB Securities announced that it will offer a special equity-linked bond (ELB) with a pre-tax annual interest rate of 4.0% to customers who open a brokerage-type Individual Savings Account (ISA).

This special ELB is a principal-protected product based on the KOSPI 200 index as its underlying asset. The maturity period is six months, and on the maturity evaluation date, it pays a pre-tax annual return ranging from a minimum of 4.00% to a maximum of 4.01%, calculated based on the closing price of the KOSPI 200 index.

This product can only be subscribed through a KB Securities brokerage-type ISA account. Starting from August 4, a total of KRW 70 billion will be raised over six rounds, with a limit of KRW 15 billion per round. The minimum subscription amount is KRW 1 million, with increments of KRW 100,000. If the subscription is oversubscribed, allocation will be made proportionally based on each investor's subscription amount, and any remaining funds after allocation will be refunded on the subscription closing date.

Notably, if customers subscribe to this special ELB through a brokerage-type ISA account and hold it for three years, they can receive tax exemption benefits of up to KRW 4 million (for basic-type accounts). For amounts exceeding this limit, a separate taxation rate of 9.9% will be applied, which is expected to effectively enhance the actual rate of return.

A KB Securities representative stated, "The special ELB exclusively for brokerage-type ISA accounts is an efficient asset management tool that provides both stable returns and tax benefits. In particular, we are currently running the 'Brokerage-type ISA Net Increase Event,' offering various benefits to customers who make net deposits and subscribe to products by August 31. We hope that many investors will take this opportunity to enjoy abundant benefits."

An ELB is a principal-protected product with low risk, where both principal and returns are paid depending on the price fluctuations of the underlying asset. KB Securities holds the highest credit rating in the industry (AA+, Korea Ratings).