South Korea Tightens Leverage Rules for Single-Stock Products, Requires 30M Won Cash Deposits From July 31

According to Seoul Economic, South Korea's financial regulator tightened rules for single-stock leveraged products, moving the implementation of enhanced cash deposit requirements to July 31. Investors seeking to buy or add to positions in these products must now maintain 30 million won in actual cash deposits, with securities and other assets no longer recognized as collateral. The move comes as the KOSPI fell 21.07% in July, with 10 consecutive trading days triggering circuit breakers.

Fourteen single-stock leveraged products linked to Samsung Electronics and SK Hynix, which launched at 20,000 won per unit, have declined to 10,635-13,015 won, recording losses of 34.93% to 46.83%. The regulator cited the products as amplifying market volatility amid broader weakness in semiconductor stocks.