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%.