Industrial Bank of Korea released a new index-linked deposit product offering a maximum potential yield of 9.1 percent for retail and corporate investors. The six-month product ties its returns to the performance of the KOSPI200 index while protecting the original principal and guaranteeing a minimum interest rate upon maturity, the-today.com reported.
IBK Index Linked Deposit 26 2-Cha Product Structures and Yields
The six-month deposit splits into two distinct structural options under the 26-2차 series. The rising knock-out option provides a return ranging from 1.0 percent to 9.1 percent if the comparison index stays within a 30 percent increase over the base index, according to the-today.com. That rate drops back to a flat 1.0 percent if the index crosses the 30 percent growth threshold at any point during the observation period. If the index falls or shows no growth, subscribers still receive the 1.0 percent minimum yield.
The stable rising pursuit option carries no knock-out barrier and yields between 2.0 percent and 5.0 percent based on index movement. Investors earn the 5.0 percent ceiling if the KOSPI200 exceeds a 40 percent increase, while flat or negative index movement secures a guaranteed 2.0 percent minimum return, the-today.com reported.
Bank caps new deposit sales at 20 billion won
Individual and corporate clients can open accounts with a minimum deposit of 1.0 million won. The bank capped total sales at 20 billion won across both structures, with sales scheduled to run through September 15, the-today.com reported. Individual customers can apply through bank branches or the i-ONE Bank mobile application, whereas corporate accounts require an in-person branch visit.
The new offering follows the May release of the 26-1차 series, which carried a 50 billion won ceiling across six-month and one-year terms with peak yields capped at 6.3 percent and 6.0 percent respectively. While the earlier iteration targeted retail clients exclusively and permitted higher total volume, the current issuance raises the maximum payout while tightening the aggregate cap and opening participation to corporate balance sheets, the-today.com reported.
KOSPI200 index deposits offer guaranteed minimum interest
What happens if the KOSPI200 index falls during the six-month term?
Investors retain their initial principal and receive a guaranteed minimum interest rate of 1.0 percent on the rising knock-out option or 2.0 percent on the stable rising pursuit option.
Who is eligible to purchase the new deposit product?
Both individual and corporate customers can subscribe to the offering until the 20 billion won sales limit is exhausted.
How does this issuance compare to the bank’s previous index-linked deposit?
The May release offered maximum yields of 6.3 percent and 6.0 percent with a 50 billion won cap restricted to individuals, whereas the new series raises the top yield to 9.1 percent, adds corporate access, and lowers total allocation to 20 billion won.
Worth a look