South Korea Raises Leverage ETF Deposit Requirements to 30M Won, Halts New Listings on July 19

According to Economist, on July 19, South Korea's policy office announced tightened regulations on single-stock leverage ETFs. The government will raise minimum cash deposit requirements from 10 million won to 30 million won starting August 5, and impose immediate restrictions on advertising and marketing. New listings of leverage, inverse, and covered-call ETF products will be suspended pending market stabilization.

The move follows rapid growth of the leverage ETF market to 11.9 trillion won in just two months since its May 27 launch. Concentration of speculative funds in Samsung Electronics and SK Hynix-linked products has raised volatility concerns. The government also plans to expand minimum trading units from 1 to 20 shares by November and strengthen investor education requirements.