New customers can receive up to 20,000 won in Naver Pay benefits

[Provided by Kiwoom Securities]
[Provided by Kiwoom Securities]

Kiwoom Securities is running a promotional event for domestic individual stock futures traders, offering share support grants for Samsung Electronics and SK hynix along with discounts of up to 90 percent on domestic futures and options commissions, as the brokerage looks to attract more derivatives investors.

Kiwoom Securities announced Monday that it will hold weekly prize draws for domestic blue-chip share support grants targeting individual stock futures traders through Oct. 30, spanning seven weeks in total. Customers can receive one entry ticket simply by signing up for the event, meaning even those who have not traded individual stock futures can participate in the draws.

The more a customer trades, the more draw entries they receive. For every 10 million won ($7,430) in domestic individual stock futures traded during the event period, one additional entry ticket is issued, and all tickets are automatically entered into the weekly draw. Winners receive share support grants for Samsung Electronics and SK hynix. For prizes exceeding 50,000 won, customers are responsible for a 22 percent tax and public levy.

Separate benefits are available for new customers. Those trading individual stock futures for the first time will receive a 10,000 won Naver Pay gift certificate upon completing one contract, with an additional 10,000 won provided upon completing 10 contracts, for a maximum benefit of 20,000 won.

Individual stock futures allow investors to respond to both rising and falling share prices. When a market decline is anticipated, traders can take a short position to hedge against the risk of falling prices on shares they already hold. Customers can also use their existing shares as substitute margin, reducing the need for separate cash collateral while enabling leveraged investment. However, if market volatility increases or prices move in the opposite direction from expectations, losses exceeding the principal can occur.

Kiwoom Securities is also cutting trading costs for domestic futures and options. The brokerage will offer up to a 90 percent commission discount on domestic futures and options for new and dormant customers through Nov. 30. The discount applies for two months after registration, reducing the online commission rate for KOSPI 200 futures from 0.003 percent to 0.00025104 percent.

The discount period can be extended based on trading volume. Customers who trade 60 billion won or more in futures or 1 billion won or more in options during the discount period can extend the discount by up to four months for non-face-to-face accounts, or up to two months for other account types.


kacew@heraldcorp.com