South Korea Halts New Single-Stock Leveraged ETF Listings, Raises Deposit to 30 Million Won
Updated
Updated · Bloomberg · Jul 16
South Korea Halts New Single-Stock Leveraged ETF Listings, Raises Deposit to 30 Million Won
3 articles · Updated · Bloomberg · Jul 16
Summary
South Korea will temporarily stop new listings of single-stock leveraged exchange-traded products, targeting a fast-growing corner of the market tied to individual shares.
The Financial Services Commission said the move is meant to curb volatility after investor demand surged for products linked to Samsung Electronics and SK Hynix.
Authorities will also raise the minimum cash deposit for leveraged ETF trading to 30 million won from 10 million won, with the tougher requirement due to take effect on Aug. 5.
The restrictions will stay in place until market conditions stabilize, signaling a broader regulatory push to cool speculative trading in popular tech-linked products.