The South Korea Financial Services Commission convened securities firms, asset managers and market bodies to press for rapid implementation of safeguards announced on July 16 for single-stock leveraged products. The measures respond to faster-than-expected demand and concerns that the products could amplify stock-price volatility, particularly amid volatility in the semiconductor sector. New listings and advertising have been suspended, while a KRW 30 million cash deposit requirement will take effect early on July 31. The authorities are also seeking to bring forward a larger minimum trading unit, strengthen assessments and add one hour of case-based pre-investment education, and tighten premium and discount controls from Aug. 19. Asset managers were asked to spread rebalancing activity rather than concentrate it near the market close, while securities firms serving as liquidity providers were urged to maintain appropriate liquidity. The commission will monitor the measures and consider tougher eligibility requirements and individual investment limits if demand does not sufficiently moderate. Industry participants agreed to examine voluntary arrangements for distributing rebalancing and managing liquidity.
South Korea Financial Services Commission2026-07-28
South Korea Financial Services Commission reviews single-stock leveraged product safeguards, signals further limits if demand persists
The South Korea Financial Services Commission called for rapid implementation of safeguards for single-stock leveraged products, including a KRW 30 million cash deposit requirement from July 31 and tighter premium and discount controls from Aug. 19. It also asked firms to spread rebalancing and manage liquidity, and may impose tougher eligibility rules or individual investment limits if demand remains elevated.