KB Kookmin Bank said on Jan. 26 it launched the KB Star Index-Linked Deposit 26-1, which guarantees principal if held to maturity while allowing investors to expect additional returns depending on fluctuations in the underlying asset.

The KB Star Index-Linked Deposit 26-1 is a one-year product linked to the KOSPI 200 index. It consists of a bull participation type (minimum rate guaranteed), a bull knock-out type (minimum rate guaranteed) and a bull knock-out type (high return seeking). Subscriptions are available at branches starting with this tranche.

For the bull participation type (minimum rate guaranteed), the maturity rate is determined by the rise in the underlying asset. As of Jan. 26 before taxes, it offers a maturity rate ranging from a minimum annual 2.80 percent to a maximum annual 3.00 percent.

The bull knock-out type (minimum rate guaranteed) offers a maturity rate ranging from a minimum annual 2.45 percent to a maximum annual 5.65 percent, depending on the rise in the underlying asset. The bull knock-out type (high return seeking) offers a maturity rate ranging from a minimum annual 1.80 percent to a maximum annual 11.2 percent.

For the bull knock-out type (minimum rate guaranteed), if the underlying asset rises by more than 20 percent during the observation period, the maturity rate is fixed at the minimum rate. For the bull knock-out type (high return seeking), if the underlying asset rises by more than 20 percent during the observation period, the maturity rate is fixed at an annual 2.10 percent.

The subscription period runs through Feb. 4 and the product is available via KB Star Banking or at branches. The subscription cap is 50 billion won for each payoff structure, for a total of 150 billion won.

A KB Kookmin Bank official said, "We expanded the sales channel to branches so more customers can subscribe to the KB Star index-linked deposit." The official added, "We will continue to launch various products to contribute to customers' stable asset formation."