Overview
- Financial Services Commission chairman Lee Eog-weon told brokerages and asset managers the minimum cash deposit to buy single‑stock leveraged ETFs will be raised to 30 million won, with the rule taking effect Friday.
- The government moved the implementation up by several weeks to try to calm sharp price swings linked to heavy retail trading in a few large names.
- Single‑stock leveraged ETFs magnify daily gains and losses on one company’s shares, and products tied to Samsung Electronics and SK hynix have attracted concentrated retail demand that regulators say worsened market volatility.
- Lee said regulators will review extra steps if demand stays high, including a possible cap that would limit these ETFs to 20 percent of an individual’s financial portfolio and requirements for funds to spread rebalancing trades through the day.
- Retail investors will face higher entry costs and possible portfolio limits, and the measures could change trading patterns and liquidity in the underlying stocks as authorities monitor impacts before deciding on further controls.