South Korea financial regulator temporarily halts single stock leveraged ETFs
Business
South Korea's top financial regulator just put a temporary stop to new single-stock leveraged ETFs, those risky funds tied to big names like Samsung Electronics and SK Hynix.
These ETFs are designed to supercharge daily stock moves using derivatives, but lately, their wild swings and constant rebalancing have been making the market more unstable.
ETF deposit tripled to 30 million won
From August 5, you'll need at least 30 million won (about $20,300) as a deposit to trade these ETFs, triple the current amount.
Asset managers also have stricter rules now, including working with qualified liquidity providers to keep prices in check.
Even with these changes, South Korea's main stock index (KOSPI) tumbled over 6% on Thursday, showing that market jitters aren't over yet.