South Korea raises the margin requirement for single stock leveraged ETFs, reducing the trading volume of related products to one tenth of their peak

According to data from the South Korean Stock Exchange, the total trading volume of 16 single stock leveraged and reverse ETFs related to Samsung Electronics and SK Hynix in the South Korean KOSPI market within two trading days after the implementation of the new measures was 1.2388 trillion Korean won, a decrease of 58.6% from 2.9907 trillion Korean won on July 31. Compared to the transaction volume of 12.4485 trillion Korean won on July 30th, the current trading volume of related products has decreased to about one tenth. The trading volume of individual investors on single stock leverage and reverse products has dropped to 250.7 billion Korean won, less than a quarter of 929.9 billion Korean won as of July 31. The regulatory authorities in South Korea have raised the minimum cash margin requirement for single stock leveraged ETF investors from KRW 10 million to KRW 30 million.