Sales of equity-linked securities slump in first half on market volatility

The issuance of equity-linked securities (ELS) and equity-linked bonds (ELB) totaled 27.7 trillion won (US$18.7 billion) in the first half, down 41.7% from the second half of last year, according to the Korea Securities Depositary Corp. However, compared to the same period a year earlier, issuance rose 27.7%. ELS products are hybrid debt securities whose returns depend on the performance of underlying equities, often tracking benchmark indexes such as the KOSPI 200. The benchmark Korea Composite Stock Price Index (KOSPI) reached a milestone of 9,000 points in June, buoyed by a global spending boom on artificial intelligence, but has since tumbled.