Lates News

According to the report from the Korea Economic Daily, the securities industry in South Korea has agreed to tighten investor protection regulations for single-stock leveraged ETFs. The Korea Financial Investment Association convened a meeting of the CEOs of major securities firms on Tuesday to evaluate and monitor the leverage ETF market of Samsung Electronics and SK Hynix, and discuss measures to address the situation. The participating institutions agreed in principle to increase the minimum margin requirements to suppress retail investors from excessive use of leverage. One proposed solution under discussion is to raise the minimum margin threshold from 10 million Korean Won to 50 million Korean Won. The institutions also agreed to provide more targeted risk warnings based on investor age and portfolio situations, and enhance investor education to help investors better understand the structure and risks of such products. Additionally, the industry agreed to more evenly distribute rebalancing and hedging trades throughout the trading day to reduce market impact caused by concentrated buying and selling before the market closes.