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Economy

Regulator raises minimum deposit requirement for leveraged ETFs amid wild swings

Korea's financial regulator on Thursday unveiled a set of measures on leveraged exchange-traded funds (ETFs) to help ensure market stability and protect investors, as the country is experiencing extreme market volatility. According to the Financial Services Commission (FSC), the listing of new ETFs tracking Samsung Electronics and SK hynix will be suspended temporarily and investors' minimum deposit requirement for a single-stock leveraged ETF will be hiked to 30 million won (US$20,000) in cash only from the current 10 million won in mixed stocks and cash. Also, investors will be allowed to trade a batch of 20 shares in the leveraged ETFs, which the regulator says will reduce turnover. The leveraged ETFs, which debuted in May this year, multiply daily moves in the underlying stocks by two times, which have been causing extreme market swings. Retail investors have been rushing to trade leveraged ETFs with underlying assets tracking the two chipmakers -- Samsung and SK hynix, which have been on a bull run amid the artificial intelligence (AI) fever. The latest move comes days after Presiden

Jul 16, 2026By Yonhap
Regulator raises minimum deposit requirement for leveraged ETFs amid wild swings
Economy

KOSPI tumbles back below 7,000 in 'Black Thursday' rout

The KOSPI tumbled back below 7,000, Thursday, just one session after a sharp rebound, as concerns over slowing artificial intelligence (AI) infrastructure investment and intensifying competition in memory chips battered semiconductor shares. The benchmark closed at 6,820.60, down 6.37 percent from the previous session. It opened 4.45 percent lower and extended its losses, falling as much as 7.6 percent to 6,730.87 intraday. A sell-side sidecar was activated at 9:10 a.m., marking the 19th such activation on the KOSPI this year. Foreign investors sold a net 1.44 trillion won ($973.9 million) of shares, while institutional investors offloaded 1.39 trillion won. Retail investors, however, bought a net 2.78 trillion won. Chipmakers led the retreat. SK hynix sank 11.53 percent to 1,842,000 won, while Samsung Electronics dropped 8.77 percent to 255,000 won. The declines followed weakness in U.S. semiconductor shares overnight. Morgan Stanley said cancellations and delays of data-center projects were becoming more widespread, citing postponement of a data-center development in Wyoming and a one-y

Jul 16, 2026By Lee Yeon-woo
KOSPI tumbles back below 7,000 in 'Black Thursday' rout
Economy

Korea triples single-stock leveraged ETF deposit, requires full cash payment

Korea will triple the minimum deposit for single-stock leveraged exchange-traded funds (ETFs) to 30 million won ($20,303) from the current 10 million won as regulators seek to curb speculative trading in the products. Investors will be required to pay the full amount in cash. Previously, investors could meet up to 70 percent of the 10 million won deposit requirement with the value of stocks they already owned. The measures were announced Thursday after the country's top economic policymakers, known collectively as the F4, agreed at a meeting in Seoul to tighten oversight of single-stock leveraged ETFs tracking Samsung Electronics and SK hynix. The group comprises the Ministry of Finance and Economy, the Financial Services Commission, the Financial Supervisory Service and the Bank of Korea. Regulators agreed to temporarily halt new product launches, ban advertising for existing products and raise the minimum order size to 20 units from one until market conditions stabilize. They plan to strengthen risk-disclosure requirements and investor education as well. At the same time, liquidity pro

Jul 16, 2026By Lee Yeon-woo
Korea triples single-stock leveraged ETF deposit, requires full cash payment
Policy

BOK begins tightening cycle as chip boom fuels growth, inflation concerns

The Bank of Korea (BOK) raised its benchmark interest rate Thursday, for the first time in three and a half years, as the semiconductor-driven economic recovery, stubborn inflation and lingering financial stability risks have combined to bolster the case for tighter monetary policy. The central bank lifted its policy rate by 25 basis points to 2.75 percent at its Monetary Policy Board meeting, marking its first rate increase since January 2023. BOK Gov. Shin Hyun-song also signaled that further rate increases remain on the table, saying the bank would “continue to respond through monetary policy until we are confident that inflation is converging sustainably toward our target.” A major factor behind Thursday’s move was the sharp improvement in Korea’s growth outlook, fueled by the global artificial intelligence (AI) boom and soaring demand for semiconductors. As economic momentum strengthens, the central bank has less need to support activity through ultra-accommodative policy and can instead focus on containing inflation. Shin said Korea, a key player in the global AI supply cha

Jul 16, 2026By Park Han-sol
BOK begins tightening cycle as chip boom fuels growth, inflation concerns
Economy

KRX activates sell-side sidecar for KOSPI on sharp decline

Korea's bourse operator on Thursday activated a sell-side sidecar for the benchmark Korea Composite Stock Price Index (KOSPI) after the index fell sharply, led by losses in technology stocks. Program trading in KOSPI-listed shares was suspended for five minutes at 9:10 a.m., according to the Korea Exchange (KRX). After opening 4.45 percent lower, the KOSPI fell nearly 5 percent. The decline came as escalating tensions in the Middle East following the United States' fresh strikes on Iran on Wednesday (U.S. time) weighed on investor sentiment. A sell-side sidecar is triggered when the KOSPI 200 Futures Index falls 5 percent or more for at least one minute.

Jul 16, 2026By Yonhap
KRX activates sell-side sidecar for KOSPI on sharp decline
Economy

Seoul shares extend losses late Thu. morning on tech losses

Seoul shares extended losses late Thursday morning, led by chip stocks, as the escalating conflict in the Middle East renewed concerns over energy supplies from the region. After opening 4.45 percent lower, the benchmark Korea Composite Stock Price Index (KOSPI) extended its losses, falling 521.49 points, or 7.16 percent, to 6,762.92 as of 11:20 a.m. The Korea Exchange, the country's bourse operator, activated a sell-side sidecar on the KOSPI for 20 minutes at around 9:10 a.m. after the benchmark index fell more than 5 percent. On Wednesday, the index surged 6.24 percent as softer-than-expected U.S. inflation data eased concerns about near-term Federal Reserve interest rate hikes. Overnight, the Dow Jones Industrial Average rose 0.29 percent to 52,658.64, while the tech-heavy Nasdaq Composite fell 0.62 percent to 26,269.23. Investor concerns over artificial intelligence-related valuations resurfaced, dragging major AI-linked technology stocks on Wall Street lower. Later on Wednesday (U.S. time), the United States launched fresh strikes on Iran, escalating tensions in the Middle East and re

Jul 16, 2026By Yonhap
Seoul shares extend losses late Thu. morning on tech losses
Cryptocurrency

ContributionPillars of pax crypto: What global regimes teach us about investor protection

The digital asset market stands at a crossroads, transitioning from the shadows of an unregulated fringe into the mainstream of digital finance. Across the globe, this paradigm shift is being codified into law. The European Union has entered full implementation of its comprehensive Markets in Crypto-Assets Regulation (MiCA). In the U.S., following the enactment of the GENIUS Act governing payment stablecoins, the U.S. Senate is finalizing the proposed Digital Asset Market Clarity Act. Meanwhile, Korea is accelerating its second-stage legislation — the foundational Digital Asset Basic Act — to complement its initial Virtual Asset User Protection Act. Moving beyond regulatory fragmentation, these global legal frameworks converge toward a singular destination. At the core of this movement is the clear establishing of a tailored digital asset investor protection framework, mirroring the historical lessons learned in traditional regulation on capital market activities. To foster a sustainable, credible digital asset ecosystem, these global legal regimes and rules are anchored by three

Jul 16, 2026By Lee Hae-boong
Pillars of pax crypto: What global regimes teach us about investor protection
Economy

Gov't to closely monitor job market amid renewed Middle East tensions

Korea will closely monitor sectors with sluggish employment, including manufacturing, amid growing concerns that renewed tensions in the Middle East could weigh on the job market, the finance ministry said Thursday. The Ministry of Finance and Economy held a joint task force meeting on the job market with the labor ministry in Seoul after data from the previous day showed Korea adding 63,000 jobs from a year earlier in June. Asia's fourth-largest economy shed 40,000 jobs in May, marking the first decline in 17 months. "The figure rebounded in June following growing hopes that uncertainties had eased after the peace negotiations between the United States and Iran," the finance ministry said. The finance ministry, however, said employment conditions for young people and the manufacturing sector remained sluggish, with the possibility of renewed tensions in the Middle East posing downside risks to the labor market. "For sectors that have recently seen sluggish employment, such as manufacturing and construction, the government plans to analyze trends and underlying factors and implement all a

Jul 16, 2026By Yonhap
Gov't to closely monitor job market amid renewed Middle East tensions
Economy

President orders swift measures on risks of single-stock leveraged ETFs

President Lee Jae Myung on Wednesday urged financial authorities to swiftly draw up measures to address risks posed by single-stock leveraged exchange-traded funds (ETFs) tied to Samsung Electronics and SK hynix, as the high-risk products come under mounting criticism for exacerbating volatility in the domestic stock market. Speaking at a policy briefing at Cheong Wa Dae, Lee singled out the controversial products, asking Korea Exchange Chairman Jeong Eun-bo, “Isn't there quite a stir over these ETFs?” The president then instructed the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) to “quickly put together well-crafted follow-up measures” to address the issue. Leveraged ETFs are designed to magnify the daily gains or losses of an underlying asset, typically a broad market index such as KOSPI or the S&P 500, by two or three times. Single-stock versions take that concept a step further, allowing investors to make amplified bets on the direction of an individual company rather than a diversified benchmark. While the structure can turbocharge returns

Jul 15, 2026By Park Han-sol
President orders swift measures on risks of single-stock leveraged ETFs
Economy

KOSPI closes near 7,300 as SK hynix ADR surge boosts investor sentiment

Korean stocks soared Wednesday, with KOSPI closing near 7,300 and Kosdaq reclaiming 800, as sentiment toward chipmakers rebounded and softer-than-expected U.S. inflation data boosted risk appetite. The benchmark KOSPI closed at 7,284.41, up 6.24 percent from the previous session. The index opened 3.3 percent higher at 7,082.91, before extending its advance to more than 6 percent and triggering a buy-side sidecar. Most sectors gained, supported by net buying from foreign investors. Foreign and institutional investors purchased a net 2.34 trillion won and 183.1 billion won of shares, respectively, while retail investors sold a net 2.46 trillion won. U.S. semiconductor stocks advanced overnight as bargain hunters stepped in following a recent sell-off. Sentiment toward Korean chipmakers received an additional boost after Barclays said the price of SK hynix's American depositary receipts (ADRs) could double, sending the securities up 27 percent. SK hynix rose 8.83 percent to 2,082,000 won, while Samsung Electronics gained 6.27 percent to 279,500 won. SK Square jumped 16.13 percent and Samsun

Jul 15, 2026By Lee Yeon-woo
KOSPI closes near 7,300 as SK hynix ADR surge boosts investor sentiment
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