DLS sales in S. Korea plunge 51.2% in Q3

The issuance of derivatives-linked securities (DLS) in South Korea tumbled more than 50 percent on-year in the third quarter of the year amid the coronavirus pandemic, data showed Friday.

The country's DLS sales stood at slightly over 3 trillion won ($2.6 billion) in the July-September period, down 51.2 percent from a year earlier, according to the data from the Korea Securities Depository (KSD).

The amount was also down 27.7 percent from the previous quarter.

DLS tracks the performance of interest rates, currency values and other underlying assets, promising high returns for risky investors.

Hana Financial Investment Co. issued the largest amount at 653.8 billion won, followed by Kyobo Securities Co. with 437.5 billion won, Samsung Securities Co. with 420.1 billion won and Hanwha Investment & Securities Co. with 341.8 billion won.

The amount of redeemed DLS reached 3.1 trillion won in the three-month period, down nearly 60 percent from a year earlier and 28.5 percent from three months earlier.

As of end-September, the value of outstanding DLS amounted to 27.2 trillion won, down 6.2 percent from a year earlier but up 1.5 percent from end-June, according to the data. (Yonhap)