Hanwha Investment & Securities Issues ELS Worth 20 Billion Won Linked to KOSPI200 etc with Maximum Loss Rate of 100% High-Risk Product
Hanwha Investment & Securities is issuing three types of equity-linked securities ELS totaling 20 billion won, linked to global indices including KOSPI200, HSCEI, S&P500 and NIKKEI225.
These ELS are non-principal protected high-difficulty financial investment products, with potential 100% loss of principal if underlying assets decline, and risks include limited liquidity and conflict of interest from issuer hedging.
Hanwha Investment & Securities reported total assets of 16.45 trillion won and total liabilities of 14.39 trillion won as of end-2025, with net profit of 100 billion won for the year, but quarterly net profit was only 19.1 billion won, and large derivative valuation losses of 223.8 billion won highlight earnings volatility.
The company is involved in 18 lawsuits as defendant totaling 148.5 billion won, including a major case related to Chinese CERCG ABCP with claim amount of 144 billion won.
[AI Summary]The ELS issuance does not dilute capital and credit rating remains AA-, but increasing issuance of high-risk derivatives and large litigation expose financial stability. Investors should recognize possibility of total loss and exercise caution.
KOSPI Filing Information
Additional Documents for Shelf Registration (Derivative-Linked Securities - Equity-Linked Securities)