韩股暴跌难阻风险偏好，散户转向高息结构产品

Odaily Planet Daily News A unprecedented stock market crash is driving South Korean retail investors toward complex structured products. These risk-seeking investors continue to look for ways to boost returns. Equity-linked securities (ELS) with annual coupon rates as high as 40% to 50% are regaining favor among retail investors. In July, ELS sales rose to a three-year high, led by products linked to Samsung Electronics and SK Hynix.

Meanwhile, regulators are moving to curb retail investors' feverish demand for leveraged single-stock exchange-traded funds. Such products are believed to have amplified market volatility during last month's 22% plunge in the benchmark Korea Composite Stock Price Index. This suggests that one of the largest market crashes in recent memory has done little to dampen retail risk appetite—it has only shifted the types of products they chase. The recent market correction appears to have created an attractive entry point for ELS products. These products offer investors coupon payments as long as the underlying stocks or indices remain within a preset range. However, if the market falls sharply, these products can also face significant downside risk. (Jinshi)