SEOUL, July 16, 2026 – South Korea's financial regulator announced new regulatory measures on Thursday to reduce market volatility caused by exchange-traded funds (ETFs) linked to major technology firms, particularly chipmakers Samsung Electronics and SK Hynix.

Single-stock, leveraged ETFs tied to these chipmakers were introduced in late May during a rally in the country's KOSPI stock benchmark. However, these derivative-based funds have since contributed to increased market volatility.

The Financial Services Commission (FSC) stated, "Recently, various worries and the needs of improvements have been raised about further increases in already heightened volatility in major memory chipmaker stocks globally and a high possibility of increasing investor losses."

To address these concerns, the FSC will raise the minimum deposit required for retail investors to invest in such ETFs from 10 million won to 30 million won (approximately $20,305.94). Additionally, the minimum trading unit will increase from 1 share to 20 shares.

Retail investors will also be required to complete additional risk education courses. Brokerage firms are advised against launching new leveraged ETFs or holding promotional events related to them. These measures follow discussions among top economic policymakers, including the finance minister and central bank governor.

The FSC emphasized that the new rules aim to protect investors while maintaining market stability and efficiency, and that further measures may be considered if necessary.

Sources