Sales of derivative-linked securities in South Korea dropped from three months earlier in the first quarter, data showed Friday, amid concerns over heavy losses for derivative products tracking Chinese stocks.The combined value of equity-linked securities (ELS) and derivative-linked securities (DLS) issued in the January-March period came to 13 trillion won (US$9.4 billion), compared with 34.5 trillion worth of products sold the previous quarter, according to the data from the Financial Supervisory Service (FSS).The reading also marks a drop from 14.9 trillion won issued during the same period last year.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.The steep on-quarter decline came as local brokerages and banks had faced mounting criticism over their sales of ELS products tracking Chinese stocks listed on Hong Kong's H-index.Following a two- month review, the financial regulator advised the sellers of such products in March to compensate their customers up to 100 percent for incomplete sales.Sales of new ELS products in the first quarter came to 8 trillion won, down from 31 trillion won in the previous quarter, while those of DLS products, which track interest rates, currency values and other underlying assets, climbed to 5 trillion won from 3.5 trillion won over the cited period.The value of outstanding ELS products also dipped to 59.2 trillion won from 67 trillion won over the cited period, with that of DLS products growing to 28.9 trillion won from 27.4 trillion won.Source: Yonhap News Agency