South Korea Raises Deposit Requirement for Single-Stock Leveraged ETFs to 30M KRW on July 20

According to Financial News, on July 20, South Korea's Financial Services Commission raised the minimum deposit requirement for both domestic and overseas single-stock leveraged ETFs and ETNs from 10 million KRW to 30 million KRW in cash. Previously, holdings of stocks or other ETFs were accepted as collateral, but only cash will now qualify. The rule applies to both new and existing investors making additional purchases. The measure aims to prevent capital from shifting to overseas products if regulations apply only to domestic offerings. However, market participants noted the effectiveness in redirecting overseas investment demand back to domestic markets remains uncertain, as investors may move funds to other overseas products or make decisions based on market returns rather than regulatory requirements.
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