The South Korea Financial Supervisory Service reported that issuance of derivatives-linked securities and bonds rose 26.2% from a year earlier to KRW 42.9 trillion in the first half of 2026. Redemptions increased 47.3% to KRW 41.7 trillion, while the outstanding balance reached KRW 96.7 trillion at the end of June, up 10.9% from the end of December 2025. Derivatives-linked bonds accounted for KRW 28.6 trillion of issuance, compared with KRW 14.3 trillion for derivatives-linked securities. Among equity-linked securities, index products led issuance at KRW 8.1 trillion, while stock products accounted for KRW 3.0 trillion. Knock-in products represented 53.1% of derivatives-linked securities issuance, and 98.7% of these had barriers of 50% or below. The annualized return on derivatives-linked securities redeemed early or at maturity increased to 7.2% from 6.3% a year earlier, led by a 7.8% return on equity-linked securities. Returns on redeemed derivatives-linked bonds remained unchanged at 3.6%.
South Korea Financial Supervisory Service reports 26.2% rise in derivatives-linked product issuance in first half of 2026
The South Korea Financial Supervisory Service reported that derivatives-linked securities and bond issuance rose 26.2% year on year to KRW 42.9 trillion in the first half of 2026. Redemptions reached KRW 41.7 trillion, while the outstanding balance increased to KRW 96.7 trillion at the end of June. Annualized returns on redeemed derivatives-linked securities rose to 7.2%, led by equity-linked securities at 7.8%.