South Korea’s Financial Services Commission approved tighter price deviation controls for all exchange-traded funds and exchange-traded notes, effective Aug. 19. The associated follow-up measures will also require individual retail investors entering domestic-listed or overseas-listed single-stock leveraged and inverse products to complete simulated trading before investing. Securities firms’ closing-price deviation limits will fall from 3% to 2% for domestic-asset products and from 6% to 5% for overseas-asset products. The Korea Exchange will streamline the process for designating products as investment-caution issues and plans to restrict new liquidity-provision activity by liquidity providers that intentionally, through gross negligence or repeatedly breach their obligations. New investors in single-stock leveraged or inverse products must complete at least five hours of simulated trading over five or more trading days, with at least one hour on each trading day. This requirement is in addition to the KRW 30 million cash deposit and three hours of prior education. The free Korea Exchange simulation will use domestic market data, including for investors seeking to trade overseas-listed products.
South Korea Financial Services Commission2026-08-12
South Korea’s Financial Services Commission tightens ETF and ETN price deviation controls and mandates simulated trading from Aug 19
South Korea’s Financial Services Commission will tighten ETF and ETN price deviation limits to 2% for domestic-asset products and 5% for overseas-asset products from Aug. 19. New individual retail investors in domestic-listed or overseas-listed single-stock leveraged and inverse products must also complete at least five hours of simulated trading, in addition to a KRW 30 million cash deposit and three hours of education.