KIWOOM Securities Files for 19.82B KRW ELS Issuance… No Dilution for Shareholders, but Investors Face Principal Loss Risk
KIWOOM Securities will publicly offer a total of 19.82 billion won in ELS (Equity-Linked Securities, non-principal-protected, high risk) through the 4018th and 4019th series, with subscription starting June 11, 2026.
Underlying assets are the NIKKEI225, S&P500, and EuroStoxx50 indices, with a 3-year maturity (June 13, 2029). Automatic early redemption occurs if all indices are at least 70% of initial strike, offering up to 6.00% p.a. (Series 4018) or 6.30% p.a. (Series 4019).
At maturity, if any index falls below 60% of its initial level, investors incur principal losses up to 100% (including total loss scenarios). Early redemption may also result in principal loss.
Proceeds will be used for hedging underlying assets and investing in financial products. These securities are unlisted and not protected by the Deposit Insurance Act.
KIWOOM maintains a strong credit rating of AA (from KIS, NICE, Korea Ratings as of March 2026), but issuer credit risk exists.
[AI Comprehensive Analysis]This disclosure concerns a routine ELS offering by a securities firm, which does not dilute existing shareholders or affect dividends, making the impact on shareholder value neutral. However, investors should be aware that ELS are high-risk structured products with potential total loss of principal.