Seoul: The Republic of Korea's issuance of equity-linked securities (ELS) jumped 19 percent from a year earlier in the first six months of the year, data showed Monday. The total value of ELS products issued in the January-June period came to 21.7 trillion won (US$15.6 billion), compared to 18.3 trillion won issued over the same period last year.
According to Emirates News Agency, equity-linked securities are hybrid debt securities whose return is determined by the performance of the underlying equity. This surge in issuance reflects growing demand for investment products that offer potential higher returns linked to the stock market performance.
Industry analysts note that the rise in ELS issuance may be driven by investors seeking alternatives to traditional fixed-income products in a low-interest-rate environment. The Korea Securities Depository provided the data highlighting this financial trend, indicating a shift in investor preferences within the Korean financial market.