Seoul: Sales of derivatives-linked securities in South Korea experienced a slowdown in 2024 compared to the previous year, data revealed on Tuesday. The overall issuance of equity-linked securities (ELS) and derivative-linked securities (DLS) in 2024 amounted to 73.6 trillion won (US$51.9 billion), a decrease from 78.9 trillion won in 2023.
According to Yonhap News Agency, the outstanding value of these securities also saw a decline, reaching 81.6 trillion won last year, marking the lowest level since 2014. ELS, which are hybrid debt securities, have their returns based on the performance of underlying equities and typically track benchmark stock indexes, such as the Korea Composite Stock Price Index 200.
The data showed that sales of ELS products decreased to 55.2 trillion won from 62.8 trillion won the previous year. Meanwhile, sales of DLS products experienced an increase, rising to 18.4 trillion won from 16.1 trillion won during the same period.
As of the end of December, the value of outstanding ELS products stood at 51.7 trillion won, down from 66.9 trillion won a year earlier. Conversely, the outstanding value of DLS increased to 29.9 trillion won, up from 27.4 trillion won over the cited timeframe.