South Korea Raises Leveraged ETF Collateral to 30M Won, Eyes Portfolio Caps

FSC Chairman Lee Eog-weon confirms Friday rollout of 30M won minimum cash collateral for single-stock leveraged ETFs. Further restrictions, including a 20% portfolio cap, may follow if volatility persists.

Woofun AI reports that South Korea’s Financial Services Commission Chairman Lee Eog-weon confirmed the assessment of a new policy raising the minimum cash collateral for single-stock leveraged ETFs to 30 million Korean won, effective this Friday. The government accelerated this requirement to stabilize market volatility and protect investors. Lee stated that if demand does not cool significantly, additional measures will be prepared, potentially including aggregate management rules limiting such ETF allocations to 20% of individual financial portfolios.