South Korea's Parliament Hosts Forum on Single-Stock Leverage ETFs on July 21, as Markets See 5 Circuit Breakers Since Launch

According to Money Today coverage, South Korea's ruling party lawmakers will host a public forum on July 21 to discuss regulatory measures for single-stock leverage exchange-traded funds (ETFs). Since the launch of these products on May 27, the KOSPI market has triggered five circuit breakers and 17 side cars, as investors increasingly use the leveraged instruments for speculative trading.

The Financial Investment Association held an emergency meeting and proposed self-regulatory measures including enhanced investor education and higher minimum deposit requirements. Currently, investors must complete two hours of training and maintain at least 10 million won in deposits to trade these ETFs. As of late June, 643,529 investors have already completed the mandatory training course.