South Korea Raises Leveraged ETF Deposit Requirements 3x to 30M Won, Effective July 31 Amid 6.11% Daily Volatility

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According to 한국경제TV, South Korea's financial regulator announced on July 28 measures to curb volatility in single-stock leveraged ETFs. The Financial Services Commission will increase minimum deposit requirements from 10 million won to 30 million won effective July 31, accepting only cash. The move aims to reduce account holders from over 100,000 to approximately 10,000, thereby lowering trading volume and volatility. The measure follows sharply elevated market swings: KOSPI's July intraday volatility reached 6.11%, the highest since 2008 financial crisis (6.11%) and significantly exceeding global peers—Japan's Nikkei at 2.57%, China's Shanghai Composite at 1.77%, Nasdaq 100 at 1.51%, and S&P 500 at 0.87%. Regulators are also considering additional measures, including a 20% cap on total investment in leveraged ETFs if volatility persists.
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