Kiwoom Securities Issues 100B KRW Principal-Protected Equity-Linked Bond Linked to Samsung Electronics - Capital Raising for Hedging, Limited Impact on Shareholder Value
On June 5, 2026, Kiwoom Securities will issue 100 billion KRW worth of 'Kiwoom Dream Public Offering Derivative Bond (Equity-Linked Bond) Series 676' linked to Samsung Electronics common stock. It is a principal-protected product with risk grade 5 (low risk).
The issue price per bond is KRW 10,000, with a total of 10,000,000 bonds. Subscription is limited to retirement pension funds, and the subscription period is from 13:00 to 16:00 on June 5, 2026.
The bond guarantees a minimum annual yield of 3.75% upon maturity (June 4, 2027), and if Samsung Electronics stock price exceeds 300% of the initial price, the yield increases slightly to 3.751% per annum.
Net proceeds after issuance costs (KRW 5 million) amount to approximately KRW 99.995 billion, which will be used for hedging derivatives and investing in financial products.
The issuer, Kiwoom Securities, has a strong credit rating of AA (as of March 2026). However, this bond is not protected by the Depositor Protection Act, so investors bear the credit risk of the issuer.
[AI Summary]This disclosure represents a routine debt issuance by Kiwoom Securities with no equity dilution or dividend impact on existing shareholders. The 100 billion KRW liability funding is for hedging and operational purposes, backed by the issuer's high creditworthiness (AA). The principal-protected structure with a guaranteed 3.75% yield makes it a low-risk product for conservative investors, but limited liquidity and potential early redemption risks should be considered.