Yuanta Securities Issues 1 Billion Won ELS Series 5778 Linked to KOSPI200 and LG Energy Solution, Very High Risk Product
Yuanta Securities is issuing ELS Series 5778 worth 1 billion won, linked to the KOSPI200 Index and LG Energy Solution common stock, with an issue price of 10,000 won per security.
This product is a non-principal-protected high-difficulty financial investment product with a risk grade of 1 very high risk, featuring a knock-in barrier at 40% of the initial price and potential loss of up to 100% of principal.
The proceeds will be used for hedging transactions and investment in financial instruments to ensure stable payment of redemption amounts. The issuer's credit rating is AA-.
Yuanta Securities had outstanding ELS of approximately 14.48 trillion won as of April 2026; this issuance is under its existing batch filing program.
[AI Summary]The issuance of ELS does not dilute shareholder equity as it is a derivative liability. However, the complex product poses reputational risk and potential hedging cost increases amid high underlying asset volatility.
KOSPI Filing Information
Additional Documents for Shelf Registration (Derivative-Linked Securities - Equity-Linked Securities)