South Korea Rejects Calls to Delist Single-Stock Leveraged ETF Despite 47% Plunge

According to South Korea's presidential office, the government rejected demands to delist single-stock leveraged ETF products despite mounting losses among retail investors. The product, which has accumulated over 10 trillion won in assets since launch, has plunged as much as 47%, sparking calls for delisting. Presidential Policy Director Kim Yong-bum stated that removing the product would create significant market disruption given its scale.

In response to investor losses, the government implemented new barriers on July 19, including a minimum cash requirement of 30 million won per account and increasing the minimum trade unit to 20 shares. Market analysts questioned the effectiveness of these measures, noting that restricting new retail participation may not reduce overall trading volatility if total transaction volumes remain unchanged.