BlockBeats report, on July 22, according to The Korea Herald, the K-Capital Markets Special Committee under South Korea's ruling Democratic Party is studying reducing the leverage ratio of leveraged/inverse ETFs tracking the daily price movements of a single stock from 2x to 1.5x.
The plan, confirmed on the 22nd by Special Committee Chairperson Koo Ji-myeong, is in response to President Lee Jae-myung’s directive to “develop countermeasures,” with discussions currently underway. Such products were originally introduced during the Moon Jae-in administration, under a policy context targeting the KOSPI index at 5,000 points; now, as the index nears this target, adjustments are being considered.
The special committee is also discussing raising the threshold for convening the Beneficiaries' Meeting from investors holding more than 5% of the total subscribed shares to a higher threshold, to prevent excessive speculation on leveraged products.
Some academics (professors from Sookmyung Women’s University and Seoul National University) have expressed support, stating that it could enhance investment security and curb excessive volatility. The Financial Committee responded that no specific proposal has yet been submitted for discussion.
In contrast, Committee Chair Wu Wenjing and others proposed alternative measures, such as prioritizing the expansion of the liquidity provider (LP) base, and emphasized that single-stock ETFs like those for Samsung Electronics and SK Hynix have performed well recently, so listing restrictions should not be significantly tightened.