🔍 South Korean brokers discuss raising the minimum deposit for leveraged chip stock ETFs; on-chain leverage risk warning

The Korea Financial Investment Association convened the CEOs of 10 major asset management firms to discuss raising the minimum deposit for single-stock leveraged ETFs from 10 million won. SK Hynix ADR premium is up more than 50%, and on-chain contract funding rates briefly spiked to 907%, with liquidation events occurring frequently.
Leverage mania is spreading from traditional brokers to on-chain. On Hyperliquid, SK Hynix perpetual contracts saw daily trading volume of over $8.8B, surpassing ETH. At this time, Korean brokers raise the threshold, indicating the regulators have noticed the risk of retail investors increasing leverage in both traditional and on-chain markets at the same time. If the Korean stock market pulls back again, the liquidation wave of on-chain leverage could be more intense than in February.
The Circle vs. Tether arbitration case offers a mirrored example: the Heka fund used USDC to arbitrage a depeg, backed by Tether’s $800 million support. Stablecoin arbitrage behavior under extreme market conditions is another form of leverage. As regulators tighten traditional leverage, funds may flow to on-chain, but on-chain lacks a circuit breaker mechanism, leaving a larger risk exposure.
South Korea’s regulatory shift may become a global signal. If regulators follow up on on-chain stock contract trading, the liquidity structure that relies on tokenized stocks will face reshaping. In the short term, the likelihood of the SK Hynix ADR premium converging is increasing.
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