Starting July 31, South Korean financial authorities tightened trading rules for single-stock leveraged ETFs, raising the initial margin requirement for individual investors from 10 million won to 30 million won and eliminating the option to use securities as margin collateral. On the first day the new rules took effect, the combined trading volume of 16 single-stock leveraged and inverse ETFs fell to 3.3071 trillion won, a sharp 75.3% decline from the previous trading day.

Meanwhile, South Korea’s KOSPI index rose sharply on the same day, triggering the market stabilization mechanism, with leading semiconductor stocks such as Samsung Electronics and SK Hynix leading the gains. However, market analysts generally believe that the KOSPI’s rise was not directly driven by the new regulations, but was primarily influenced by shifts in global capital flows, overseas investors covering short positions, and a correction of previously excessive pessimism. Some retail investors complained that the timing of the regulators’ decision to raise trading thresholds coincided with the market rebound, causing them to miss out on the opportunity to participate in the rally.