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South Korean Asset Managers Discuss Raising Minimum Deposits for Single-Stock Leveraged ETFs

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2026-07-15 02:14:04
South Korea’s Financial Investment Association said CEOs from 10 major asset management firms discussed investor protection measures for launching single-stock leveraged ETFs, including raising minimum deposit requirements and spreading rebalancing trades across the trading day.

According to Odaily, a statement from the association said participants agreed it is necessary to increase the minimum deposit required to invest in such leveraged products from the current level of 10 million won.

To reduce the market impact of daily rebalancing trades that are concentrated before the close, the asset managers said efforts are needed to distribute rebalancing activity across different times during the trading day. They also said the market-stabilizing role of liquidity providers should be strengthened.

The association, citing data from the Korea Capital Market Institute, estimated that since the launch of the related leveraged ETFs, the stock trading volume required for daily rebalancing has been about 700 billion to 2.1 trillion won.
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