South Korea will require investors participating in a single-stock leveraged exchange-traded fund for the first time to complete simulated transactions to further tighten regulations on such high-risk products, which exacerbate market volatility. The Financial Services Commission of Korea issued a statement saying that investors who invest in a single-stock leveraged ETF for the first time must complete simulated trading for at least 5 trading days with a cumulative total of not less than 5 hours. The new regulations will also apply to domestic and overseas related investments starting August 19. Previously, the sharp decline in the market caused investors' assets to evaporate billions of dollars. This move is the latest move by the regulatory authorities to restrict ordinary individual investors from participating in leveraged ETFs. The regulator has previously raised the minimum deposit for this type of transaction to 30 million won and extended the mandatory online training period for new investors in single-stock leveraged products to 3 hours. Market critics believe that leveraged products linked to chip giants Samsung Electronics and SK Hynix amplified fluctuations in the Korea Composite Index, and the regulatory authorities introduced these restrictions as a result.

South Korea will require investors participating in a single-stock leveraged exchange-traded fund for the first time to complete simulated transactions to further tighten regulations on such high-risk products, which exacerbate market volatility. The Financial Services Commission of Korea issued a statement saying that investors who invest in a single-stock leveraged ETF for the first time must complete simulated trading for at least 5 trading days with a cumulative total of not less than 5 hours. The new regulations will also apply to domestic and overseas related investments starting August 19. Previously, the sharp decline in the market caused investors' assets to evaporate billions of dollars. This move is the latest move by the regulatory authorities to restrict ordinary individual investors from participating in leveraged ETFs. The regulator has previously raised the minimum deposit for this type of transaction to 30 million won and extended the mandatory online training period for new investors in single-stock leveraged products to 3 hours. Market critics believe that leveraged products linked to chip giants Samsung Electronics and SK Hynix amplified fluctuations in the Korea Composite Index, and the regulatory authorities introduced these restrictions as a result.