South Korea Raises Single-Stock Leverage ETF Deposit Requirement to 30M Won from 10M on July 31

According to the Financial Services Commission, South Korea will raise the minimum cash deposit requirement for single-stock leverage exchange-traded funds (ETFs) and notes on Samsung Electronics and SK Hynix to 30 million won from 10 million won, effective July 31. The measure, originally scheduled to be implemented in two phases on August 5 and August 19, will now take effect simultaneously. Additionally, securities held as collateral will no longer be accepted as deposit assets, and deposit proceeds from stock sales will only be recognized after settlement on the T+2 date.

According to a Realmeter poll conducted on July 22, 64.7% of respondents viewed the introduction of single-stock leverage ETFs as an incorrect decision, while 19% deemed it a good decision. The early implementation follows President Lee Jae-myung's directive on July 21 to implement necessary measures swiftly.