Kyobo Securities Issues KRW 29.7 Billion in Equity-Linked Securities (ELS) – High-Risk Product with Possible Principal Loss
Kyobo Securities filed a prospectus on May 28, 2026, for its 13601st equity-linked derivative securities (ELS), a public offering worth KRW 29.7 billion (issue price KRW 9,900, 3 million securities).
The ELS is linked to three indices (S&P500, EuroStoxx50, Nikkei225) and is a non-principal-protected high-risk product (Grade 2) with potential total loss of principal (-100%).
Monthly coupons (8.25% p.a., pre-tax) are paid if all indices close at or above 60% of the initial strike; automatic early redemption (6 months to 2.5 years, step-down from 85% to 70%) returns 100% of principal.
At maturity (June 13, 2029), if all indices are at or above 55% of initial, full principal is repaid; if any index falls below 55%, principal loss occurs based on the worst-performing index (up to 100%).
Subscription is on June 12, 2026, with a minimum of KRW 1 million. The offering may be canceled if total subscriptions are less than KRW 500 million. Proceeds will be used for hedging and financial investments.
[AI Comprehensive Analysis]This disclosure is a routine ELS issuance by Kyobo Securities, with no impact on equity or shareholder dilution, thus neutral for the stock price. However, the product itself is a high-risk, non-principal-protected instrument, requiring clear investor awareness. For the issuer, it represents a stable funding channel backed by its AA- credit rating and sound financials.