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2026-07-15 09:04:12
[South Korea plans to tighten regulations on leveraged chip ETFs, raise investment thresholds and diversify rebalancing] (1) The Korea Financial Investment Association revealed that the CEOs of ten leading asset management companies held a meeting to discuss investor protection measures for single-stock leveraged ETFs. The core content includes raising the minimum investment margin and diversifying the timing of daily rebalancing transactions. (2) The association stated that all parties have reached a consensus to further raise the current minimum entry capital standard (10 million won, approximately US$6,714); at the same time, in order to alleviate the impact of concentrated rebalancing at the close of trading hours on the market, it is proposed to diversify the rebalancing operations throughout the day. (3) Participating companies also proposed to strengthen the market stabilization role of liquidity providers. According to data from the Korea Capital Market Research Institute cited by the association, since the listing of the relevant leveraged ETFs, the daily stock trading volume required for rebalancing is estimated to be between 700 billion and 2.1 trillion won.
