South Korea plans to raise the minimum cash margin requirement for single-stock leveraged ETFs ahead of schedule

Golden Finance reported that on July 24, according to news from South Korea, South Korea’s financial regulators are studying a plan to bring forward the measure to raise the minimum margin requirement for single-stock leveraged ETFs—originally set to take effect next month—so that it will be implemented by the end of this month. This move is seen as a response to South Korean President Lee Jae-myung’s call to quickly implement additional measures for single-stock leveraged ETFs.

According to a report from financial investment circles on the 23rd, on the 21st the Korea Financial Investment Association held a working-level meeting with IT personnel from related institutions, including securities firms, the Korea Exchange, and Korea Securities Computing Corporation (Koscom), to discuss the implementation of the single-stock leveraged ETF regime/rules. It is reported that the financial regulators are considering advancing the planned minimum margin increase, originally scheduled for early next month, to be carried out by the end of this month. However, regarding the specific implementation timing and applicable approach, the regulator will make the final decision.