PANews
PANews|Aug 02, 2026 10:12
[South Korea Plans to Grant Financial Regulators 'Emergency Intervention Powers': Considering Limits on Leverage Multiples and Investment Caps for Single-Stock Leveraged ETFs] According to South Korean media outlet NATE, South Korea's financial regulatory authorities are advancing amendments to the Capital Markets Act, aiming to grant regulators 'emergency intervention powers' to directly implement market stabilization measures during periods of extreme stock market volatility. The Financial Services Commission (FSC) has already initiated the relevant legal revision process in collaboration with the Financial Supervisory Service (FSS), focusing on single-stock leveraged ETF products that are believed to have amplified market fluctuations during recent stock market downturns. Proposed regulatory measures include adjusting leverage multiples and setting investment caps to mitigate risks arising from concentrated trading during abnormal market conditions. Additionally, South Korean financial regulators are considering measures such as setting individual investment limits for single-stock leveraged ETFs, capping investment limits at approximately 20% to prevent excessive capital concentration, and introducing a simulated trading system to enhance investors' understanding of the risks associated with leveraged products.
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