South Korean single stock leverage and reverse ETF turnover decline, investors turn to overseas and semiconductor products

After the implementation of regulatory measures for single stock leverage and reverse ETFs in South Korea, the total transaction volume of 16 related products on August 7th was 941.2 billion Korean won, which was below 1 trillion Korean won for two consecutive days after 919.8 billion Korean won in the previous trading day. The new regulations will increase the basic margin requirement for individual investors participating in single stock leveraged ETFs from KRW 10 million to KRW 30 million. South Korean investment securities researcher Jung Hyun jong stated that the trading volume of individual stock leveraged ETFs has decreased, but the trading volume of semiconductor leveraged ETFs has increased. Investors may turn to overseas single stock leveraged ETFs that are not subject to domestic regulatory restrictions in South Korea, such as the CSOP SK Hynix Daily (2x) Leveraged Product listed in Hong Kong.