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South Korea Regulator Suspends New Leveraged ETFs on Samsung and SK Hynix, Raises Deposit Minimum
The Financial Services Commission suspended new leveraged ETF listings tied to Samsung Electronics and SK hynix. It also raised the minimum cash deposit for single-stock leveraged products and limited trades to batches of 20 shares.
Jul 16, 3:40 AM·1m read2 sources
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South Korea's Financial Services Commission on July 16 suspended the listing of new leveraged exchange-traded funds that track Samsung Electronics and SK hynix. The regulator also raised the minimum deposit required to trade any single-stock leveraged ETF to 30 million won in cash, up from the prior 10 million won that could be paid in a mix of stocks and cash.
Investors will now trade the products only in batches of 20 shares.
The changes aim to curb turnover in instruments that double daily moves in their underlying stocks. Leveraged ETFs first appeared in May 2026. Retail investors have concentrated trades in products linked to the two chipmakers amid their recent gains.
President Lee Jae Myung on July 15 directed regulators to prepare steps to stabilize the market. A screen in the Hana Bank dealing room in Seoul showed the benchmark Korea Composite Stock Price Index down 4.24 percent to an intraday low of 6,975.33 during early trading on July 16.
