Samsung Securities Issues 125 Billion KRW in DLS for Hedging with No Share Dilution

Samsung Securities is issuing a total of 125 billion KRW in DLS through a shelf registration, comprising Series 5003, 5004, and 5005.
Each note is linked to the 3-month Korean Treasury bond rate KRW 3m KTB with a partial principal protection structure, maturing in October 2026, January 2027, and April 2027 respectively.
The proceeds will be used for hedging to ensure stable repayment and for investment in financial products, not for expansion or debt repayment.
The issuer holds an AA+ credit rating from NICE, but the notes are not protected by the Depositor Protection Act and may incur principal losses upon early redemption.
[AI Summary]This 125 billion KRW DLS issuance by Samsung Securities is a routine capital management action under its shelf program, involving no equity conversion or capital change, thus no dilution for shareholders. The funds are allocated to hedging and risk management, limiting direct impact on financial soundness. Investors should note the low yield relative to credit risk and potential illiquidity.