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NH Investment & Securities launches a new equity-linked security (ELS) product. Photo courtesy of NH Investment & Securities

Investors pick up products of Seoul-based brokerage house

NH Investment & Securities announced on April 20 that it would attract investors with its new equity-linked security (ELS) product beginning the day.

The Seoul-based brokerage house said that the product, dubbed the ELS-19450, will limit the potential losses to less than 10 percent.

In case its two underlying assets, shares of Samsung Electronics and Kakao, enjoy higher prices in three, six, and nine months after the issuance, investors will get annual profits of 12 percent.

Those who are invested in the product have to channel at least 100,000 won and can subscribe to it by 1 p.m. April 24.

Meanwhile, NH Investment said that its previous products, including the ELS-19423 and the ELS-19454, were big hits. In particular, the outfit said that the former draw almost 200 billion won.

According to Investopedia, an ELS is a debt instrument with variable payments linked to an equity market benchmark. They are offered to investors so the issuer can raise capital.

NH Investment was launched in 2006 when Sejong Securities was incorporated into the National Agricultural Cooperate Federation, otherwise known as Nonghyup.

Currently, CEO Jeong Young-chae heads the Seoul-based brokerage, whose largest shareholder is NH Financial Group. Its stake is 76.09 percent.