Single-Stock Leveraged ETF Market Falls 2.8 Trillion Won in One Week Despite Regulatory Tightening

According to Korea Exchange, single-stock leveraged ETF market cap declined to 9.1 trillion won on July 24, one week after South Korea's financial authorities announced supplementary measures. The market had peaked at 11.9 trillion won on July 15, following initial launch on May 27.

Despite the decline, market concentration persisted. The 16 single-stock leveraged ETFs' share of total ETF trading volume rose to 38.5% on July 24 from 38.2% on July 15, with turnover increasing to 114% from 109%. In response, the Financial Services Commission accelerated enforcement of stricter deposit requirements, moving the effective date from August 5 to July 31, requiring individual investors to maintain minimum cash deposits of 30 million won for new purchases.