Kiwoom Securities announced on the 27th that it will sell a stock-linked derivative bond (ELB) with a pre-tax annual interest rate of 3.6%. Subscriptions are possible until 1 p.m. on the 28th.
The 925th ELB from Kiwoom has a maturity of 6 months and is based on common stock of Samsung Electronics as the underlying asset. Customers with a Kiwoom Securities brokerage account (stock account) can subscribe without additional conditions.
If an investor applies for early redemption before maturity, a pre-tax annual revenue of 1% will be paid on a prorated basis. Although the possibility is low, if the closing price of Samsung Electronics common stock, the underlying asset, exceeds 200% of the initial reference price on the maturity evaluation date, an additional revenue of 0.01% of the investment amount will be given.
The total recruitment size is 20 billion won, and the minimum subscription amount is 100,000 won, while the maximum subscription limit per account is 1 billion won. If the subscription competition is high, the allocation will be proportionally distributed according to the subscription amount per investor. Any remaining amount after allocation will be refunded on the subscription closing date.
The ELB is fundamentally a low-risk product that pays back principal and revenue, but if a credit event (default or bankruptcy) occurs with the issuing company, Kiwoom Securities, there may be a loss of principal. Currently, Kiwoom Securities has a credit rating of AA- (Korea Credit Rating, as of May 23, 2025).