The outstanding value of derivatives-tied securities issued in South Korea touched a near eight-year low in the third quarter amid a fall in Hong Kong share prices, data showed Monday.

The amount of outstanding equity-linked securities (ELS) and derivatives-linked securities (DLS) came to 79.9 trillion won ($67.1 billion) as of end-September, down 300 billion won from the previous quarter, according to the data from the Financial Supervisory Service.

The September tally was the lowest value since the end of 2013. The outstanding value in Asia's fourth-largest economy has been on the decline since June 2020.

ELS and DLS are structured to track the performance of underlying assets but do not guarantee the principle, as investors prefer instruments that promise higher yields.

The outstanding value of ELS stood at 53 trillion won at the end of June, down 0.6 percent from three months earlier.

ELS refers to hybrid debt securities whose returns are determined by the performance of benchmark stock indexes, including the Korea Composite Stock Price Index (Kospi) 200.

The value of outstanding DLS instruments, which track interest rates, currency values and other underlying assets, amounted to 26.9 trillion won, the same as at the end of June.

In particular, ELS and DLS sales tumbled by 6.4 trillion won from three months earlier to 14.6 trillion won at the end of September, according to the data. (Yonhap)