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South Korea’s equity-linked securities surge to record $13.8 billion in Q3

A tech-fueled rally in the Kospi index sends demand for ELS and DLS soaring. Why are investors betting big on these high-risk, high-reward products?

This picture shows few cross symbols and few papers and key chains on the glass table.
This picture shows few cross symbols and few papers and key chains on the glass table.

South Korea’s equity-linked securities surge to record $13.8 billion in Q3

Sales of equity-linked and derivative-linked securities in South Korea rose sharply in the third quarter of 20XX. The combined value of newly issued products reached 19.8 trillion won ($13.8 billion). By the end of September, the total outstanding balance for these securities stood at 89.6 trillion won.

Equity-linked securities (ELS) saw strong demand, with third-quarter sales climbing to 12.8 trillion won. This marked a significant increase from 9.4 trillion won in the same period last year. By late September, the outstanding value of ELS products had grown to 54.2 trillion won.

Derivative-linked securities (DLS) also experienced a surge, with sales hitting 7.1 trillion won. This was up from 4.8 trillion won in the previous year’s third quarter. The outstanding value of DLS products reached 35.4 trillion won by the end of September. While no specific firms were named as driving the growth, gains in the Kospi index—fuelled by tech giants like Samsung Electronics and SK Hynix—played a key role. Strong expectations around AI and semiconductor exports supported broader market confidence in these products.

The third quarter’s sales figures highlight a clear upward trend in structured financial products. With ELS and DLS combined now totaling 89.6 trillion won in outstanding value, the market reflects growing investor interest. The rise aligns with broader optimism in South Korea’s tech-driven stock performance.

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