South Korea curbs slash leveraged chip ETF trading to 4% of peak
Why it matters: The pullback hit products tied to Samsung Electronics and SK Hynix after new mock-trading and deposit rules aimed to cool volatility.
South Korea’s tighter rules for risky single-stock ETFs have sharply reduced retail trading in leveraged funds tied to Samsung Electronics and SK Hynix. Trading value in the products fell to 4% of its June peak after regulators rolled out a series of curbs, including an Aug. 19 requirement that investors complete five days of simulated trading on a Windows-only PC program. The measures followed wild swings in a market where the leveraged ETFs and the two chip stocks at one point made up more than 80% of turnover. Investors also face a higher minimum deposit, with the mock system using 100 million won in virtual cash to show how leveraged bets can erode over time.