As the South Korean structured products market gets to grips with the recent mis-selling scandal that could result on regulatory restrictions on the sales of complex products by banks, SRP takes a look on the current landscape of the market with Geunhyuk Jang (pictured), research fellow at Korea Capital Market Institute.
How did South Korea become one of the largest structured products markets in the world, with complex products gaining popularity among retail investors that are generally risk averse? The sales of [non-principal protected] equity-linked securities [ELS] started around 2003 and after 2014, ELS products with ‘step-down’ options made up the majority of the market share. Between 2015 and 2016, when the Hang Seng China Enterprises Index (HSCEI) went through a drastic drop and ELS product
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