Sales of derivatives-linked securities in South Korea fell in the third quarter, as investor sentiment weakened on bearish markets, data showed Friday.

The combined value of equity-linked securities and derivatives-linked securities issued in the quarter came to 13.2 trillion won ($10.1 billion), down 3.1 trillion won from a quarter ago, according to the data from the Financial Supervisory Service.

The products are structured to track the performance of underlying assets, not guarantee the principle, as investors prefer instruments that promise higher yields.

The issuance of ELS products fell by 2.3 trillion won to 9.9 trillion won in the quarter.

ELS refers to hybrid debt securities, whose returns are determined by the performance of underlying equities. ELS products track benchmark stock indexes, including the Korea Composite Stock Price Index 200.

Sales of DLS instruments, which track interest rates, currency values and other underlying assets, declined by 900 billion won to 3.2 trillion won in the quarter. (Yonhap)