South Korean savers are flocking to hybrid deposit products that promise stability while offering a taste of stock market gains, as a bull run in the country’s benchmark KOSPI sparks renewed demand for equity-linked savings instruments.

Sales of equity-linked deposits (ELDs) and equity-linked bonds (ELBs), which guarantee principal but tie part of returns to the benchmark index, have already topped 10 trillion won ($7.1 billion) in 2025 to date according to data from the country’s five largest lenders - KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and NH Nonghyup Bank.

As of Monday, ELD sales totaled 7.57 trillion won, exceeding the total for all of 2024. ELB sales rose to 4.76 trillion won in the same period, more than 300 billion won higher than the 2024 tally.

Offered by banks, ELDs typically place up to 98 percent of deposits into traditional lending to secure stable income while channeling the remaining 2 or 3 percent into stock index-linked derivatives. The structure guarantees a minimum return while giving savers limited upside if the KOSPI gains.

ELBs, by contrast, are issued by securities firms and typically offer higher potential returns but come with greater risk - they are not covered by deposit insurance, unlike ELDs.

The surge highlights a shift among cautious retail investors seeking to balance capital protection with exposure to equities as Korea’s benchmark index continues its upward momentum.

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