South Korea Considers Cutting Single-Stock Leveraged ETF Ratio from 2x to 1.5x
2026-07-22 11:32

Woofun AI reports that the K-Capital Market Special Committee of South Korea's Democratic Party is evaluating a proposal to reduce the leverage ratio of single-stock leveraged and inverse ETFs from 2x to 1.5x. This initiative follows President Lee Jae-myung's directive to establish countermeasures, with committee chairman Gu Ji-myung confirming ongoing discussions. The committee is also considering raising the threshold for convening beneficiary assemblies from 5% to mitigate excessive speculation. While some academics argue this enhances investment security, the Financial Services Commission stated no specific proposal has been submitted. Conversely, Chairman Oh Moon-kyung suggested prioritizing liquidity provider expansion and warned against strict listing restrictions, citing strong performance of Samsung Electronics and SK Hynix ETFs.

Disclaimer: Views are the author's own and do not represent the platform. Do not reproduce without permission. Content is for reference only, not investment advice. Trade at your own risk.
Tags:
Lee Jae-myung
Gu Ji-myung
Moon Jae-in
Oh Moon-kyung
Share:
back