South Korea toughens regulations on single-stock leveraged ETFs
Regulators will raise retail margin requirements to 30 million won and make asset managers accountable for pricing gaps as trading in the products hit 212 trillion won in June.
- On Thursday, South Korea's Financial Services Commission halted new listings of leveraged ETFs tracking major technology firms to curb market volatility, with the ban remaining until market conditions stabilize.
- Fourteen leveraged and two inverse ETFs tracking Samsung Electronics and SK Hynix launched on May 27, 2026, amplifying daily returns but exacerbating price swings through massive rebalancing trades needed to maintain leverage.
- Trading volume in single-stock ETFs reached 212 trillion won in June, while retail margin borrowing hit a record 60 trillion won by May, fueling speculative activity that destabilized the broader market.
- Starting Aug 5, asset management companies must retain qualified liquidity providers, while retail investors must maintain a 30 million won cash balance, increased from 10 million won, to trade these products.
- President Lee Jae Myung urged swift action on Wednesday, prompting the Financial Supervisory Service to accept responsibility for hasty approvals; strategist Inki Cho warned aggressive measures could trigger exit rushes amplifying volatility.
15 Articles
15 Articles
South Korea to pause listings of single-stock ETFs
South Korea is to temporarily halt new listings of single-stock leveraged exchange-traded funds (ETFs) to curb market volatility after a surge in popularity of the products tied to Samsung Electronics Co and SK Hynix Inc.The ban would remain in place until market conditions stabilize, the South Kore
South Korea toughens regulations on single-stock leveraged ETFs
South Korea's financial regulator on Thursday unveiled a series of regulatory measures aimed at easing market volatility triggered by exchange-traded funds (ETFs) that are tied to certain major technology firms.
South Korea regulator to announce new measures on single-stock leveraged ETFs
SEOUL, July 16 (Reuters) - South Korea's top financial regulator Financial Services Commission will announce new measures on single-stock leveraged ETFs soon, its chief said on Thursday. The regulator will "closely inspect and review improvement meas...
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