Overview
- South Korea’s Cabinet approved the rule change, which takes effect next week and allows both 2x leveraged and inverse funds tied to one stock.
- Only large, highly traded domestic shares qualify under FSC rules, leaving Samsung Electronics and SK hynix as the first eligible underlyings.
- Asset managers are expected to seek listings in late May after securities filings and Korea Exchange reviews.
- Investor protections include an added advanced training course, a 10 million won minimum deposit, and plain labels using terms such as single-stock, leveraged or inverse.
- The FSC will extend weekly options to individual stocks in late June, starting with Samsung, SK hynix, Hyundai Motor and LG Energy Solution, with ETF weekly options to follow later in the year.