Interest rate-linked products continue to gain traction, led by the three-month Korea Treasury Bond as the most-sold underlying for DLBs.
Sales of structured products in South Korea maintained their momentum, reaching KRW7 trillion (US$5.05 billion) in July, up 18% from the prior year’s period and roughly flat from the prior month, according to SRP data. One of the drivers behind this growth were equity-linked securities (ELS), mostly used for capital-at-risk structures that typically feature autocallable payoffs, which saw sales rise roughly one-third year-on-year (YoY) to KRW1.75 trillion last month. However, ELS sales dr