Yuanta Securities Issues ELS Series 5686 (Linked to KOSPI200 & LG Energy Solution, Non-Principal Protected, Very High Risk)
- Yuanta Securities (credit rating AA-) issues non-principal protected ELS Series 5686 linked to KOSPI200 index and LG Energy Solution common stock (total offering 100 billion won, maturity 3 years)
- Risk grade: Grade 1 (very high risk), high-complexity financial product, maximum loss 100% (total principal loss possible)
- Automatic early redemption conditions: 1st-3rd at 75%, 4th-6th at 70%, 7th-8th at 65%; if all above 65% at maturity, annual return 10.02% (pre-tax)
- Knock-in barrier 50%: if any underlying falls below 50%, principal loss proportional to worst performer
- Subscription period: Feb 9-12, 2026 (16:00), minimum subscription 1 million won, issuance may be cancelled if total subscription <500 million won
- Liquidity risk: unlisted, early redemption at 90% (within 6 months) or 95% (after) of fair value, possible principal loss
- Issuer credit rating AA- (Korea Ratings, NICE, June 2025), not covered by deposit insurance, cooling-off period applies
- Potential conflicts of interest from issuer's hedging activities; terms may be adjusted or early terminated in case of market disruption
- Historical losses on similar products: Hong Kong H-share ELS up to 98% loss (2014, 2024), DLF up to 98.1% loss (2019)
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KOSPI Filing Information
- Filing: Additional Documents for Shelf Registration (Derivative-Linked Securities - Equity-Linked Securities)
- Company: Yuanta Securities Korea (003470)
- Submission: Yuanta Securities Korea Co., Ltd.
- Receipt: 02-04-2026