South Korea to Raise Minimum Deposit for Single-Stock Leveraged ETFs to 30 Million Won on July 31

According to Meritz Securities, South Korea's financial authorities will implement strengthened regulations for single-stock leveraged exchange-traded funds on July 31, raising minimum deposit requirements from 10 million to 30 million won and halting recognition of substitute securities. The move is expected to reduce high-frequency trading activity.

Data shows the changes are already affecting market behavior. SK Hynix single-stock ETF turnover rate declined from 179% to 146%, while Samsung Electronics fell from 45% to 38%, according to the brokerage report. However, concerns persist about concentrated fund flows toward large-cap semiconductor stocks.