[DigitalToday reporter Ji-young Lee] KB Kookmin Bank launched an index-linked deposit that offers interest of up to 5.70 percent a year depending on moves in the KOSPI200 index. If held to maturity, the product guarantees principal while offering additional returns depending on the index gain.

KB Kookmin Bank said on Tuesday it launched the "KB Star Index-Linked Deposit 26-5" and will take subscriptions through Oct. 27.

The product uses the KOSPI200 as the underlying asset. It comes in four versions: an "upside participation (minimum rate guarantee)" type and an "upside knock-out (minimum rate guarantee)" type, each offered with 1-year and 6-month terms.

For the upside participation type, the maturity rate is determined by the underlying asset's rate of increase. The 1-year product applies rates from a minimum 3.50 percent a year to a maximum 3.88 percent, while the 6-month product applies rates from a minimum 3.25 percent to a maximum 3.59 percent.

For the 1-year upside knock-out type, rates range from a minimum 3.30 percent a year to a maximum 5.70 percent. If the KOSPI200 rises by more than 30 percent during the observation period, the maturity rate is fixed at the minimum level of 3.30 percent a year.

For the 6-month upside knock-out type, rates range from a minimum 3.10 percent a year to a maximum 5.58 percent. If the index rises by more than 20 percent during the observation period, the minimum rate of 3.10 percent a year applies.

All rates are annual pre-tax rates as of Oct. 14. Principal is guaranteed if held to maturity, but early termination may result in a loss of up to 0.2 percent of principal.

Subscriptions are available through Oct. 27 via the KB Star Banking app or at branches. The subscription limit is 50 billion won for each return structure.

A KB Kookmin Bank official said, "We expanded the subscription limit for a product structure that saw strong customer demand during the previous sale."