ELD (지수연동예금) 완벽 가이드: 원금 보장하며 높은 수익? 낙아웃 조건 & 중도 해지 주의!

As traditional savings accounts offer limited returns, investors are increasingly turning to equity-linked deposits (ELDs) – a financial product designed to protect principal while offering the potential for higher yields. Sales of ELDs at four major South Korean banks surged in 2025, indicating a growing appetite for this type of investment.

Rising Popularity of ELDs

In 2025, the four largest banks – KB Kookmin, Shinhan, Hana, and NH NongHyup – collectively sold 12.3338 trillion Korean won in ELDs. This represents a significant increase of nearly 5 trillion won compared to the 7.3733 trillion won sold in the previous year. This growth coincides with a bullish stock market, with the KOSPI index aiming for the 5000-point mark.

ELDs function by investing the customer’s principal in relatively safe assets like national bonds. The potential for additional returns is then linked to the performance of a stock market index, such as the KOSPI 200. These products typically have a term of around one year, aiming to combine the stability of a deposit with the potential gains of the stock market.

Understanding the ‘Knock-Out’ Feature

While ELDs can offer attractive returns – with rates ranging from 4% to 11% annually – realizing these benefits requires a thorough understanding of the “knock-out” principle. This feature stipulates that if the underlying index rises above a predetermined threshold (typically 20-25% during the deposit term), the higher interest rate is forfeited, and a pre-defined, lower fixed rate is paid instead.

For example, consider an investor, A, who deposits 1 million won into ‘KB Star ELD 26-1호’. If the KOSPI 200 index is at 800 at the time of deposit, the return depends on whether the index surpasses 960 (a 20% increase) during the term. If the index reaches 960 at any point, the investor will receive a fixed rate of 2.10%, resulting in approximately 21,000 won in interest.

However, if the index remains below 960 throughout the term, and ends close to that level, the investor could earn up to 11.20%, or 112,000 won in interest. Even if the index falls below the initial level, a minimum interest rate of 1.80% is guaranteed.

Potential Risks and Considerations

Investors should also be aware of potential penalties for early withdrawal. ELDs typically only guarantee the principal amount if held until maturity. For instance, withdrawing funds from ‘KB Star ELD 26-1호’ within three months of deposit incurs a 0.20% fee, reducing the returned principal.

Financial institutions advise investors to carefully review key product details, including the underlying index, the knock-out threshold, the range of potential returns, and the terms for early withdrawal. A financial expert noted that investors seeking stability should prioritize products with higher minimum guaranteed rates, while those with a higher risk appetite may opt for products with greater upside potential.

Frequently Asked Questions

What is an Equity-Linked Deposit (ELD)?

An ELD is a deposit product where the principal is invested in safe assets, and additional returns are linked to the performance of a stock market index, such as the KOSPI 200.

What does ‘knock-out’ mean in relation to ELDs?

‘Knock-out’ refers to a condition where if the underlying index rises above a certain threshold during the deposit term, the higher potential interest rate is forfeited, and a lower, fixed rate is paid instead.

Are there penalties for withdrawing funds early from an ELD?

Yes, ELDs typically only guarantee the principal amount if held until maturity. Early withdrawal may result in a fee being deducted from the principal, as seen with ‘KB Star ELD 26-1호’, which charges a 0.20% fee for withdrawals within three months of deposit.

Given the complexities of ELDs and the importance of understanding the ‘knock-out’ feature, how carefully should investors align these products with their individual financial goals and risk tolerance?