Hanwha Investment & Securities Launches Industry's First "Reboot-Structured ELS"

Hanwha Investment & Securities announced on August 21 that it has launched the industry’s first “Reboot-structured Equity-Linked Securities (ELS)” product.

The Hanwha Investment & Securities Reboot-structured ELS is a new type of derivative-linked security. When the underlying asset first reaches the knock-in barrier (the range where principal loss may occur), a protection period is triggered, which nullifies the touch record and suspends observation during that period. After the protection period ends, knock-in observation resumes, giving investors the advantage of a recovery period for the asset price after the initial knock-in touch.

Additionally, the Reboot-structured ELS allows for early redemption during the protection period if certain conditions are met. If the maturity evaluation date falls within the protection period, the accumulated maturity yield is paid regardless of the redemption conditions.

The “Hanwha Deluxe ELS No. 10703” features a reboot step-down structure, with Nikkei 225, Hong Kong H Index (HSCEI), and Euro Stoxx 50 as the underlying assets. The product is available for subscription until August 28, with a total limit of 5 billion KRW. However, for general retail investors, the subscription period is extended until August 25 in consideration of the cooling-off period.

This product has a three-year maturity, offers early redemption opportunities every six months, and provides a maximum annual yield of 7.3% (pre-tax). The knock-in barrier is set at 50%, and the protection period lasts for 120 business days.

Hanwha Investment & Securities plans to introduce a variety of Reboot-structured ELS products every week. Subscriptions can be made at Hanwha Investment & Securities branches, via the Mobile Trading System (MTS), the Home Trading System (HTS), and the company website.

Park Kitae, Head of Derivatives Strategy at Hanwha Investment & Securities, stated, “We plan to offer Reboot-structured ELS products with a variety of underlying assets and structures in the future,” adding, “These products will serve as suitable investment alternatives for investors seeking greater stability.”