KB Kookmin Bank Launches New KOSPI 200-Linked Deposit With Up to 13.8% Annual Return

KB Kookmin Bank said April 14 it has launched the “KB Star Equity-Linked Deposit (ELD) 26-3,” a principal-protected product if held to maturity that can offer additional returns depending on the performance of the underlying asset.

The one-year product is linked to the KOSPI 200 index and comes in three structures: an upside participation type (minimum-rate guaranteed), an upside knock-out type (minimum-rate guaranteed), and an upside knock-out type (high-yield seeking).

For the upside participation type (minimum-rate guaranteed), the maturity rate is set based on the index’s gain, ranging from an annual 2.95% minimum to an annual 3.05% maximum (as of April 13, before taxes).

For the upside knock-out type (minimum-rate guaranteed), the maturity rate ranges from an annual 2.95% minimum to an annual 3.50% maximum. The upside knock-out type (high-yield seeking) offers an annual 2.00% minimum to an annual 13.8% maximum.

For the upside knock-out type (minimum-rate guaranteed), if the underlying index rises more than 25% during the observation period, the maturity rate is fixed at the minimum rate. For the upside knock-out type (high-yield seeking), the same applies if the index rises more than 20%.

Subscriptions will be accepted through April 22. The sales cap totals 250 billion won: 100 billion won each for the upside participation type (minimum-rate guaranteed) and the upside knock-out type (minimum-rate guaranteed), and 50 billion won for the upside knock-out type (high-yield seeking).

A KB Kookmin Bank official said the bank increased the subscription limit for product structures that drew strong demand in the previous sale, and asked for customers’ interest and participation.