KSD Reports Record High ELS Issuance of 99.9 Trillion Won Last Year

[Asia Economy Reporter Oh Ju-yeon] Last year, the total issuance amount of derivative-linked securities (ELS·DLS) was 129.2386 trillion KRW, with the issuance amount of ELS (including ELB) approaching 100 trillion KRW, marking an all-time high.

On the 30th, the Korea Securities Depository announced that last year's ELS issuance amount was 99.9011 trillion KRW, a 15.3% increase compared to the previous year (86.6203 trillion KRW), setting a record high. DLS (including DLB) issuance amounted to 29.3375 trillion KRW, a 0.3% increase from the previous year (29.2569 trillion KRW).

By issuance type, ELS public offerings accounted for 85.6253 trillion KRW, representing 85.7% of total ELS issuance, up 17.0% from the previous year (73.2029 trillion KRW). DLS private placements accounted for 21.3022 trillion KRW, 72.6% of total DLS issuance, down 7.1% from the previous year (22.9344 trillion KRW).

By underlying assets of ELS, index-linked products dominated, with high proportions of EURO STOXX 50 and S&P 500. ELS based on indices (including overseas indices) accounted for 87.5% (87.4471 trillion KRW) of total issuance, while ELS based on domestic individual stocks accounted for 11.0% (11.0128 trillion KRW).

For DLS, those based on interest rates amounted to 10.7051 trillion KRW (36.5%), credit-based DLS was 7.879 trillion KRW (26.9%), and mixed types were issued at 6.4993 trillion KRW (22.2%).

By securities firms, Mirae Asset Daewoo issued the largest amount of ELS at 14.338 trillion KRW, with the top five firms (60.6651 trillion KRW) accounting for 60.7% of total ELS issuance. For DLS, Hana Financial Investment issued the most at 4.8471 trillion KRW, with the top five firms (15.7437 trillion KRW) accounting for 53.7% of total DLS issuance.

Meanwhile, the total redemption amount of derivative-linked securities last year was 132.9964 trillion KRW.

Early redemption in ELS accounted for 80.5584 trillion KRW, representing 79.1% of total ELS redemption. In DLS, early redemption was 16.2722 trillion KRW (52.3%) and maturity redemption was 13.8155 trillion KRW (44.4%), showing similar proportions.

At the end of 2019, the outstanding balance of ELS was 71.0486 trillion KRW, and the outstanding balance of DLS was 37.4331 trillion KRW, making the total outstanding issuance balance of derivative-linked securities 108.4817 trillion KRW.

This content was produced with the assistance of AI translation services.