South Korea Raises Single-Stock Leverage ETF Deposit Requirement to 30M KRW Starting July 31

According to The Fact, South Korea's government and financial investment industry reached consensus on July 27 to strengthen regulation of single-stock leveraged ETFs. Beginning July 31, the basic deposit requirement for these products will increase from 10 million Korean won to 30 million won, with officials considering a further increase to 50 million won if market volatility persists.

Oh Ki-hyung, chairman of the Democratic Party's K-Capital Market Special Committee, also proposed renaming single-stock leveraged ETFs as "high-risk derivatives" rather than ETFs, arguing the current terminology misleads consumers about the products' true risk profile. He indicated the committee would push for capital markets law amendments to formalize the name change.