To curb speculation, South Korea plans to raise the trading unit for single-stock leveraged ETFs.

South Korea's financial regulators are discussing related measures: raising the minimum trading unit for single-stock leveraged ETFs to 20 units, while allowing individual investors holding fewer than 20 units of the product to sell their remaining holdings through after-hours closing price trading. According to the financial investment industry on the 5th, South Korea's Financial Services Commission plans to announce detailed guidelines for this regulatory revision next month. This is a follow-up implementation arrangement to the commission's supporting policy in July, when it proposed raising the trading unit to 20 units in order to curb speculative trading in single-stock leveraged ETFs. Once the minimum trading unit is raised to 20 units, investors holding 1 to 19 units will be unable to sell during regular trading hours. As a remedial measure, regulators are considering allowing investors, within a specified period, to use the after-hours closing price trading system to sell fractional shares of fewer than 20 units.