South Korea's financial authorities have suspended the launch of new single-stock leveraged exchange-traded funds (ETFs) and raised the minimum investor deposit threshold to 30 million won (approximately $22,000), in a move announced officially on 16th July 2025.
The measures are designed to shield retail investors from losses associated with highly speculative derivative instruments. Single-stock leveraged ETFs are products that track at least twice the daily return of a specific individual stock. Their inherent volatility and elevated risk of loss have long drawn scrutiny from regulators and investor-protection advocates alike.
The sharp increase in the deposit requirement — a significant step up from the existing baseline — raises the barrier to entry for retail participants seeking exposure to such products. The ban on new product launches takes effect immediately, though trading in existing single-stock leveraged ETFs already on the market will be permitted to continue.