Low rates to favour equity-linked securities in South Korea this year

The popularity of equity-linked securities is set to remain strong in South Korea as investors seek yield enhancement to combat low interest and deposit rates

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Equity-linked securities' popularity to remain strong in South Korea

Low interest and deposit rates are set to boost the equity-linked securities (ELS) market further this year, with the bulk of the demand coming from yield-hungry retail investors.

"[Over the past year] the main demand came from retail investors," says Harold Moon, managing director, head of structured equity derivatives at Nomura, Korea, in Seoul.

"We saw a pick-up in ELS activity in November and retail investors started investing again, especially because the product in Korea has a step-down

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