Korea Rules Out Leveraged ETF Delisting, Targets NAV Divergence Mitigation
2026-07-19 16:50

Woofun AI reports that Kim Yong-bum, Chief of Presidential Policy at the Blue House, stated on KBS that delisting leveraged ETFs is "hard to imagine" given their size exceeding 100 trillion Korean won. He noted that forced removal would generate significant market impact and selling pressure. Kim affirmed recent regulatory measures, including a 30 million Korean won cash margin requirement and a 20-stock trading unit minimum, stating these steps substantially address market concerns. He emphasized the need for further discussions with regulators and firms to minimize market impact during specific periods by reducing the deviation between ETF net asset value and closing prices.

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Kim Yong-bum
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