South Korea's Single-Stock Leveraged ETF Volumes Plummet 27% on July 27, Ahead of 30M Won Margin Rule

According to South Korea's exchange data reported by Daum, single-stock leveraged ETF trading volumes plummeted on July 27, with combined daily turnover for 14 leveraged and 2 inverse ETFs tracking Samsung Electronics and SK Hynix falling to 7.46 trillion won, down 27% from the previous trading day and over 30% from the prior week's daily average.

Market participants attributed the sharp decline to anticipated regulatory changes. Starting July 31, retail investors purchasing or increasing positions in single-stock leveraged ETFs/ETNs must maintain a 30 million won cash margin requirement. Regulators also plan to raise minimum trading unit thresholds to curb high-frequency trading and reduce market speculation.