South Korean retail traders shift to broader leveraged ETFs after 30 million won rule

South Korean retail investors rotated away from single-stock leveraged ETFs after financial authorities imposed a 30 million won minimum deposit requirement on July 31, with money moving into broader index and sector products even as overall risk appetite weakened. Data released on August 8 by Koscom and Timefolio Asset Management showed KODEX Leverage was individuals' top net buy at 177.3 billion won on August 6 after the KOSPI fell 4.58%, while KODEX KOSDAQ 150 Leverage led on August 7 at 40.9 billion won; the combined trading value of the top 10 net-bought ETFs fell from 547.5 billion won to 196.5 billion won over those two sessions. Authorities said the rule cut single-stock leveraged ETF trading from the 12 trillion won range to the 3 trillion won range on the first day and, in the latest Korea Exchange data, to 845.2 billion won on August 7 from 12.4485 trillion won on July 30. The VKOSPI stood at 69.88 as of 1:45 p.m. on August 10, down 5.71 points, or 7.55%, on the day and 18.91% from July 30, marking its first intraday move below 70 since May 28 and reinforcing signs that the most violent phase of South Korea's market turmoil may be easing, though volatility remains elevated.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.