Kyobo Securities Launches Monthly Payout ELB Linked to SK hynix as Underlying Asset

Kyobo Securities announced on September 3 that it will publicly offer one type of equity-linked bond (ELB), which uses common shares of SK hynix as its underlying asset, until September 11.

This offering, "ELB 456th," is a principal-protected, monthly payout product with a three-year maturity.

On each monthly profit evaluation date, if the monthly profit evaluation price of the underlying asset is at least 50% of the initial reference price, a pre-tax monthly return of 0.475% (annualized at 5.70%) will be paid. However, if the evaluation price falls below 50% of the initial reference price as of the evaluation date, the profit for that month will not be paid.

This product provides an early redemption opportunity every six months. If the price of the underlying asset is at least 100% of the initial reference price on any automatic early redemption evaluation date, the principal will be paid and the product will be redeemed early.

Even if the maturity evaluation price of the underlying asset falls below 100% of the initial reference price at maturity, the principal will still be returned; however, principal losses may occur if the product is redeemed before maturity.

The minimum subscription amount is 1 million won, and subscriptions can be made in increments of 100,000 won. Further details can be found on the Kyobo Securities website or on its mobile trading system (MTS) "Win.K."

Meanwhile, ELBs are not covered by deposit protection, and contracted profits may not be paid due to fluctuations in the price of the underlying asset. In addition, when requesting early redemption, there is a possibility of principal loss, and the credit risk of the issuer should also be considered.

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