The outstanding DLS reached 12.7 trillion won (11.5 billion U.S. dollars) at the end of June in 2020, down 31 percent from six months earlier, according to the Financial Supervisory Service (FSS).
The DLS refers to financial products that track the performance of underlying assets, including stocks, stock indices, interest rates, credit, funds and raw materials.
The local DLS market, launched in 2005, advanced to about 17 trillion won (15.3 billion U.S. dollars) in 2016, but it retreated since 2019 when concerns emerged over risk factors of the market, caused by massive loss in the foreign interest rate-linked securities, the FSS said.
The DLS, issued with credit as underlying asset, amounted to 4.4 trillion won (4.0 billion U.S. dollars), or 34.3 percent of the total outstanding DLS, as of end-June last year.
It was followed by the DLS with exchange traded funds (ETF) as underlying asset taking up 19.6 percent of the total, the fund-based DLS with 19.0 percent, interest rate-linked DLS with 17.2 percent and raw materials-based DLS with 9.9 percent each.
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