South Korea's FSC Raises Minimum Cash Margin for Single-Stock Leveraged ETFs to 30 Million Won, Effective July 31

According to Chosun, South Korea's Financial Supervisory Commission (FSC) will raise the minimum cash margin requirement for individual investors purchasing single-stock leveraged ETFs and ETNs to 30 million won, effective July 31. The previous requirement was 10 million won and allowed other securities as collateral; the new rule accepts only cash. The measure applies to both domestic and overseas-listed single-stock leveraged products and covers new purchases and additional investments, though sell orders remain unrestricted.

Market data shows the 16 single-stock leveraged products currently trading have grown from 4.4 trillion won in total market value on May 27 to 11.9 trillion won as of July 15, with daily trading volume increasing from 10.4 trillion won to 13 trillion won.