S.Korea's sale of derivatives-tied securities falls in Q3 of 2022

South Korea's sale of derivatives-tied securities fell in the third quarter of 2022 as investors avoided risky investments, financial watchdog data showed Monday.

The combined issuance of equity-linked securities (ELS) and derivative-linked securities (DLS) came in at 11.3 trillion won (9.1 billion U.S. dollars) in the July-September quarter, down from 14.7 trillion won (11.8 billion dollars) in the previous quarter, according to the Financial Supervisory Service (FSS).

The third-quarter reduction was attributed to the global financial market slump and its higher fluctuation.

The ELS issuance tumbled 31.6 percent from three months earlier to 7.9 trillion won (6.3 billion dollars) in the third quarter, but the DLS sale gained 7.2 percent to 3.4 trillion won (2.8 billion dollars).

The ELS refers to securities whose returns are determined by the performance of individual stocks and stock indices, while the DLS tracks the performance of interest rates, currency values, commodities and other underlying assets.

The financial products, which do not guarantee principal but offer high yields, are preferred by investors with a high appetite for risk.