Sales of Derivative-Linked Securities Surge in South Korea’s Third Quarter

Seoul: Sales of derivative-linked securities in South Korea increased in the third quarter from a year earlier, data showed Wednesday. The combined value of equity-linked securities (ELS) and derivative-linked securities (DLS) issued in the July-September period amounted to 19.8 trillion won (US$13.8 billion), reflecting a rise of 5.7 trillion won from the previous year. According to Yonhap News Agency, the outstanding value of these securities reached 89.6 trillion won at the end of September, marking an increase of 2.4 trillion won from the end of the previous year. ELS are hybrid debt securities with returns tied to the performance of underlying equities and typically track benchmark stock indexes, such as the Korea Composite Stock Price Index 200. Sales of ELS products increased to 12.8 trillion won in the third quarter, up from 9.4 trillion won a year earlier. Similarly, the sales of DLS products rose to 7.1 trillion won from 4.8 trillion won during the same period. The value of outstanding ELS produc ts stood at 54.2 trillion won as of the end of September, up from 48.2 trillion won a year prior. Meanwhile, the value of outstanding DLS increased to 35.4 trillion won, a rise from 30.1 trillion won over the cited period.