South Korean Brokerages Discuss Raising Minimum Deposit Requirements for Chip Stock Leveraged ETFs

TechFlow news, July 15, according to Cailian Press, the Korea Financial Investment Association stated that CEOs of 10 major asset management companies in the country discussed investor protection measures for individual stock leveraged ETFs, including raising minimum deposit requirements and dispersing rebalancing trading times. According to a statement released by the association, participants agreed that it is necessary to raise the minimum deposit requirement for investing in such leveraged products from the current level of 10 million won ($6,714). They also pointed out that the market stabilizer role of liquidity providers needs to be strengthened. Citing data from the Korea Capital Market Institute, the Korea Financial Investment Association stated that since the launch of the relevant leveraged ETFs, the daily stock trading volume required for rebalancing is estimated to be approximately 700 billion to 2.1 trillion won.