Woofun AI reports that the Korean Financial Services Commission has advanced the implementation of stricter base deposit requirements for single-stock leveraged ETFs and ETNs to July 31. Individual investors must now hold at least 30 million KRW in cash to purchase or add to positions, replacing the previous 10 million KRW threshold that allowed converted assets like stocks and bonds. This regulation applies to both domestic and overseas listed products.

The FSC accelerated these investor protection measures due to rapid growth in market capitalization and trading volume since May 27, alongside increased volatility in major memory chip stocks. Market data indicates that the total market capitalization of the 16 existing single-stock leveraged products rose from 4.4 trillion KRW to 11.9 trillion KRW, while trading volume increased from 10.4 trillion KRW to 13 trillion KRW by July 15. Under the new rules, only cash assets are accepted, and proceeds from securities sales count toward the deposit only after T+2 settlement. The FSC aims to curb high-frequency circular trading and may implement further supplementary measures if market overheating persists.