Issuance of 99.7 Billion Won Principal-Protected ELB (Linked to KOSPI200, Monthly 0.48% Coupon)

Kyobo Securities (credit rating AA-) issues 99.7 billion won of its 12488th equity-linked derivative bond (low risk, grade 5) with a subscription period of only May 14, 2026.
The underlying asset is the KOSPI200 index, with a maturity date of May 16, 2029 (3 years), and the structure is principal-protected (100% principal repayment at maturity or upon automatic early redemption).
Monthly coupon condition: If the KOSPI200 closing price on each monthly coupon evaluation date is at least 75% of the initial reference price, a monthly coupon of 0.48% (5.76% per annum) is paid, up to 36 times.
Automatic early redemption: Starting after 6 months, if the KOSPI200 is at least 90% of the initial price on any of 5 evaluation dates, the bond is redeemed at 100% principal, and no further coupons are paid.
At maturity: Regardless of whether the KOSPI200 is above or below 90% of the initial price, 100% of principal is repaid, but there is a risk of principal loss if the issuer (Kyobo Securities) defaults.
The issuer's credit rating is AA- (from KIS and KBP, June 2025). This derivative bond is not covered by the depositor protection act and is not listed on an exchange, limiting liquidity.
Minimum subscription amount is KRW 1 million. The issuance may be canceled if total subscriptions are less than KRW 300 million.
The issuer plans to use the proceeds for hedging the underlying asset and investing in financial products.

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