Kyobo Securities Issues KRW 100 Billion Equity-Linked Bond (Linked to Samsung Elec & SK Hynix, Principal Protected)

Kyobo Securities issues the 12496th equity-linked bond (normal risk, grade 4) worth KRW 100 billion (1,000,000 units, face value KRW 10,000). Underlying assets: Samsung Electronics common stock and SK Hynix common stock.
Maturity 3 years (2029.05.17), unlisted, principal-protected structure. Issuer credit rating AA- (Korea Ratings, NICE Investors Service).
Monthly coupon: If both underlying assets close above 70% of initial price on each monthly observation date, pay 0.805% per month (9.66% p.a.), up to 36 times.
Automatic early redemption: On 1st to 11th observation dates (every 3 months), if both assets are above 85% of initial price, repay 100% principal and stop coupon payments.
Maturity repayment: If both assets are above 85% of initial price or any asset is below, repay 100% of face value (principal protected).
Early redemption possible but at 95% of fair value (90% for first 6 months), potentially incurring principal loss.
Underlying volatilities: Samsung Elec 49.41%, SK Hynix 61.58%, correlation 0.8054. Simulated maximum return 28.98% (pre-tax).
Issuer risk: Unsecured, not covered by deposit protection, subject to issuer's credit risk.
Issuance may be cancelled if total subscription amount is less than KRW 300 million.
Underlying companies Samsung Electronics and SK Hynix recently announced share buybacks, cancellations, and dividend decisions.

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