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South Korea is considering reducing the leverage ratio of a single stock leveraged ETF from 2x to 1.5x, and relevant discussions are underway.

South Korea is considering reducing the leverage ratio of a single stock leveraged ETF from 2x to 1.5x, and relevant discussions are underway.

BlockBeatsBlockBeats2026/07/22 03:33

BlockBeats News, July 22nd, according to

The Korea Economic Daily
, the K-Capital Market Special Committee affiliated with the ruling party in South Korea, the "Democratic Party of Korea," is studying a proposal to reduce the leverage ratio of leveraged/inverse ETF products that track a single stock with a price change of double to 1.5 times.


This proposal is in response to President Lee Jae-myung's directive to "establish countermeasures," confirmed by the committee chairman Gu Ji-myung on the 22nd that related discussions are underway. Such products were introduced during the Moon Jae-in government, against the backdrop of the KOSPI index reaching the 5000-point target. Now, as the index is approaching this target, adjustments are being considered.


The committee is also discussing raising the threshold for convening a "beneficiary assembly" by the issuer, from the current requirement of investors holding over 5% of total subscription shares, to prevent excessive speculation on leveraged products.


Some scholars (professors from Sejong University and Seoul National University) support this move, believing it can enhance investment security and curb excessive volatility. The Financial Services Commission responded that there is currently no specific proposal submitted for discussion.


In contrast, Chairman Oh Moon-kyung and others proposed alternative measures such as prioritizing the expansion of "liquidity providers (LPs)" and emphasized that single-stock ETFs of companies like Samsung Electronics and SK Hynix have performed well recently, suggesting that significant increases in listing restrictions should be avoided.

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