KIWOOM Securities Issues 70.3 Billion KRW in Non-Principal-Protected ELS Across 11 Series - Funds Raised for Hedging with Limited Shareholder Impact
KIWOOM Securities filed a supplementary shelf registration statement on June 25, 2026, announcing the issuance of 11 series of New Global 100 Trillion Equity-Linked Securities from Series 1942 to 1952, with a total offering amount of approximately 70.3 billion KRW.
All securities are Grade 1 very high risk non-principal-protected products, linked to underlying assets such as KOSPI200 index and individual overseas stocks including Tesla, Micron Technology, Palantir, Qualcomm, Samsung Electronics, and Broadcom, with knock-in barriers that may result in total loss of principal.
The issuer, KIWOOM Securities, has a stable AA credit rating, but these securities are not covered by the Depositor Protection Act and are unsecured unsubordinated obligations, exposing investors to potential losses if the issuer's financial condition deteriorates.
The proceeds will be used for hedging underlying assets and investing in financial instruments, not for direct shareholder returns or growth investments.
As of end-May 2026, KIWOOM Securities had outstanding derivative-linked securities of approximately 1.49 trillion KRW in public offerings and total credit exposure of 120.2 billion KRW, indicating manageable credit risk.
[AI Summary]This ELS issuance by KIWOOM Securities is a routine product offering with proceeds allocated to hedging activities, resulting in a neutral impact on shareholder value. No equity dilution or share buyback is involved. Given the issuer's AA credit rating, the event is considered standard business practice with limited short-term effect on the stock price.
KOSPI Filing Information
Additional Documents for Shelf Registration (Derivative-Linked Securities - Equity-Linked Securities)