South Korea to Introduce Additional Regulations on Single-Stock Leveraged ETFs

Regulation
โดย Reuters·Read original
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South Korea's Ministry of Economy and Finance announced on the 29th that it plans to introduce additional regulations on leveraged exchange-traded funds linked to individual stocks, and may also set a cap limiting each retail investor's investment in such products to 20 percent of their total investment assets. The measures come in response to sharp fluctuations in the country's stock market, which authorities say are being amplified by concentrated investments in single-stock leveraged products. The government also said it may raise the costs associated with related transactions to curb excessive trading, applying fees similar to those imposed on excessive orders in the futures market. Furthermore, authorities will introduce simulated trading requirements in addition to existing investor education, and will establish a legal basis enabling regulators to take market stabilization measures in emergencies, drawing on frameworks such as Hong Kong's flexible leverage regulations. The ministry said these measures will be implemented immediately, while previously announced safety measures, including raising the minimum deposit to 30 million won, will take effect from July 31.

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