South Korea Triples Leveraged ETF Deposit Requirement; Retail Investors Rotate $3.77B Into 3x US Index Funds

SOXL10.23%
TQQQ0.62%

According to Korea Times data, South Korea's Financial Services Commission announced on 16 July 2026 that it would triple the cash deposit requirement for single-stock leveraged ETFs from 10 million won to 30 million won, effective 31 July, while suspending all new product listings indefinitely.

Retail investors immediately rotated into 3x-leveraged US index ETFs not covered by the restrictions. SOXL, Direxion's 3x semiconductor ETF, attracted $3.77 billion in net buying during June and July, jumping to the top overseas purchase by Korean retail accounts on the announcement date. TQQQ, ProShares' 3x Nasdaq-100 fund, ranked second with $31.96 million.

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