Financial authorities to cap leverage investment in single stocks at 20% of an individual's total investment

South Korean authorities announced tougher controls on single-stock leveraged ETFs to curb overheated trading and concentrated flows.

Measures under review include individual investment caps, trading fee charges, simulated trading, and a basis for adjusting leverage ratios.

The 3,000,000 won initial deposit requirement will take effect on the 31st, while new listings and advertising have already been halted.

Officials aim to reduce volatility and investor losses in high-risk single-stock leveraged ETFs, especially amid KOSPI weakness and semiconductor stock swings.