South Korea Mandates 5-Hour Simulated Trading for Single-Leverage ETF Investors

New rules require five days of simulated trading before single-leverage ETF purchases, effective August 19, aiming to curb retail losses from high-volatility products.

Woofun AI reports that the South Korean Financial Services Commission will mandate new investors to complete at least five days of simulated trading, totaling no less than five hours, before acquiring single-leverage exchange-traded funds. These regulations, effective August 19, apply to related investments both domestically and internationally, serving as a further restriction on retail access to leveraged ETFs following previous billion-dollar losses. This measure complements existing requirements, including a 30 million won minimum cash deposit and extended online training for single-stock leveraged products.