Kyobo Securities issues 10 billion won DLS linked to 3-month Treasury bond rate with principal protection at maturity

Kyobo Securities issues 1238th DLS low risk grade 5 worth 10 billion won with subscription on June 19, 2026.
The underlying asset is the 3-month Treasury bond rate. If the rate exceeds 8% at maturity on June 21, 2027, investors receive 3.74% per annum; if 8% or below, 3.75% per annum, with principal protection.
Early redemption is possible at 95% of fair value or 90% within 6 months, but may incur principal loss. The note is unlisted, posing liquidity risk.
Issuer credit rating is AA- from KIS and KCR, indicating strong creditworthiness. Proceeds will be used for hedging and investment activities.
[AI Summary]This 10 billion won DLS issuance by Kyobo Securities does not affect equity capital or cause dilution. The principal-protected structure and solid issuer credit provide stable expected returns, but early redemption costs and lack of exchange listing introduce significant liquidity risk for investors.