The TR Korea ETF (02848) has risen more than 3%. At the time of writing, it is up 2.72% to HKD 1,660, with a turnover of HKD 2.7282 million.
Market reports indicate that South Korea's high-level economic coordination mechanism, involving four key government departments, will convene a meeting on Thursday to study countermeasures against the impact of single-stock leveraged ETFs on the stock market. This marks the first formal discussion of this issue within this mechanism.
This mechanism is the highest-level economic coordination platform jointly participated in by the Ministry of Economy and Finance, the Financial Services Commission, the Bank of Korea, and the Financial Supervisory Service. Recently, Kim Yong-beom, the presidential policy chief, stated at a press conference that the F4 meeting is closely monitoring the market impact of single-stock leveraged ETFs, adding that "if remedial measures are necessary, a decision will be made at the F4 market condition review meeting."
Prior to Thursday's meeting, regulators have already been advancing research on countermeasures through multiple simultaneous paths. Market discussions on potential measures currently center around three categories: increasing margin requirements, limiting daily price fluctuation ranges, and adjusting leverage ratio caps.
The Financial Services Commission will convene experts from major securities firms and asset management companies on the 14th to discuss supplementary measures for single-stock leveraged products. Specific proposals include raising the minimum margin requirement (i.e., the capital threshold investors must pre-deposit into accounts) and strengthening pre-investment education.
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