Regulators face political pressure to tighten oversight after raising deposit requirements for single-stock leveraged ETFs amid speculative trading concerns.
South Korea’s Financial Services Commission faces renewed calls from lawmakers to strengthen oversight of single-stock leveraged ETFs, days after tripling the minimum deposit requirement to curb speculative trading. The move targets a market segment under scrutiny for months due to rising investor losses and volatile trading volumes.
The FSC’s recent rule change follows warnings about excessive risk-taking in leveraged products, which have surged in popularity. Lawmakers now demand continuous monitoring and additional measures if market conditions fail to stabilize, signaling potential further restrictions ahead.
Separately, discussions on digital asset legislation and bank governance reforms remain active, though timelines for implementation are unclear. Rising interest rates and household lending risks add to the regulatory agenda.