South Korea's Deputy PM Apologizes for Leveraged ETF Issues, Raises Minimum Deposit to 30M Won

South Korea's Deputy Prime Minister and Finance Minister Koo Yun-cheol apologized on July 29 for shortcomings in the rollout of single-stock leveraged exchange-traded funds (ETFs). In a parliamentary hearing, he announced enhanced safeguards, including raising the minimum deposit requirement to 30 million won and requiring cash-based deposits instead of securities. Koo acknowledged that while government policy aimed to bring overseas-traded leveraged products domestically to reduce investment risks, unintended consequences emerged. He attributed current market volatility to multiple factors beyond leveraged ETFs alone and committed to additional corrective measures.
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