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Banks rush to launch ELD products as regulator keeps watch

South Korean banks are rolling out equity-linked deposits (ELDs) as falling deposit rates and a strong stock market lift demand for alternatives to fixed-term deposits. The Financial Supervisory Service is looking closely at sales practices as ELD issuance rises. It says returns can vary widely with index moves, some products may lock in low rates due to knock-out options, and early termination can bring fees. Authorities are urging stronger oversight and clearer explanations to consumers.