South Korea Halts New Single-Stock Leverage ETF Listings, Raises Minimum Deposit 3x on July 16

SK Hynix-4.61%
SKHY0.89%
SKHYV-0.98%
According to FactNews, South Korea's financial regulator suspended new listings of single-stock leverage exchange-traded funds on July 16, raising minimum deposit requirements to 3 million won from 1 million won, as market risk intensified. SK Hynix plunged 11.53 percent domestically on the day, while its U.S.-listed ADR gained 12.75 percent, highlighting diverging market sentiment. The regulator also strengthened liquidity management requirements and increased pre-investment education from 2 hours to 3 hours. South Korea approved 16 leverage ETFs on May 27, concentrating products and capital in a few large-cap stocks, amplifying volatility compared to the more diversified U.S. leverage market.
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