STOCKS | South Korea Plans To Suspend New Stock Leverage ETF Listings

South Korea's Financial Commission said it will suspend new listings of stock leverage ETFs and ban related advertising as a supplemental measure to address risks linked to Samsung Electronics and SK Hynix stock leverage ETFs. According to Jin10, the regulator will also raise the basic margin required to invest in such products from 10 million won to 30 million won, with only cash counted toward the requirement. The regulator said substitute collateral securities other than cash, such as government bonds, will no longer be included in the margin calculation. It plans to implement the higher basic margin requirement in August. It also plans to tighten ETF premium and discount management standards for securities firms from 3% to 2%, extend investor education for stock leverage products from 2 hours to 3 hours, and temporarily raise the minimum trading unit for stock leverage products from 1 unit to 20 units.