Kiwoom Securities Files Additional ELS Issuance with Maximum Annual Return of 7.92% Amid Record Net Profit and Continued Shareholder Returns
Kiwoom Securities has submitted a supplementary registration statement for the additional issuance of equity-linked securities ELS from issue 1294 to 1299. These ELS include underlying assets such as Hyundai Motor, POSCO Holdings, and Samsung Electronics, offering maximum annual returns up to 7.92 percent.
The ELS are non-principal-protected structures with various investment risks including underlying asset price fluctuations, issuer credit risk, liquidity risk, and early termination risk. They are not covered by the depositor protection act and may result in principal loss if the issuer goes bankrupt.
Kiwoom Securities reported a consolidated net profit of KRW 1.099 trillion for 2025, demonstrating stable profitability. The company strengthened shareholder returns by canceling KRW 105.7 billion in treasury shares and paying KRW 301.3 billion in dividends.
The company maintains financial soundness with its net capital ratio NCR meeting regulatory requirements. However, there is evaluation uncertainty of KRW 253.5 billion related to a fund managed by Gentoo Partners.
[AI Summary]Kiwoom Securities' additional ELS issuance is part of normal business operations with no equity dilution, but the non-principal-protected structure requires investor caution. Stable profitability and active shareholder returns are positive, but the KRW 253.5 billion fund evaluation uncertainty poses a potential risk.