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FSS develops measures on single-stock leverage products
17 July 2026 South Korea
Image: sayan/stock.adobe.com
The Financial Supervisory Service (FSS) has announced the introduction of supplementary measures for single-stock leverage products.
It follows recent discussions at the Market Situation Review Meeting chaired by South Korea’s Deputy Prime Minister for Economic Affairs Koo Yun-cheol on 16 July.
These measures aim to strike a balance between the original intent of the regulations — such as resolving asymmetries between domestic and overseas regulations — and concerns over a further increase in stock price volatility related to major memory semiconductor companies, and the need to protect investors.
In order to mitigate excessive competition in the market, the measures state that new listings of single-stock products will be temporarily suspended until the market stabilises.
Secondly, the measures aim to improve the investor protection framework, including management of price deviation, enhancing the responsibility of securities firms and asset management companies for managing price deviation.
According to the FSS, this will also strengthen risk disclosures and pre-trading education for investors, including overseas investors.
Lastly, the financial regulator aims to strengthen investment requirements to stabilise demand by increasing the minimum margin requirement for single-stock leverage products, and adjusting the trading unit size from 1 share to 20 shares.
The relevant authorities will implement these measures on a case-by-case basis to stabilise the market as soon as possible.
In addition, authorities will continuously monitor market conditions and are prepared to review additional measures should the market fail to stabilise.
It follows recent discussions at the Market Situation Review Meeting chaired by South Korea’s Deputy Prime Minister for Economic Affairs Koo Yun-cheol on 16 July.
These measures aim to strike a balance between the original intent of the regulations — such as resolving asymmetries between domestic and overseas regulations — and concerns over a further increase in stock price volatility related to major memory semiconductor companies, and the need to protect investors.
In order to mitigate excessive competition in the market, the measures state that new listings of single-stock products will be temporarily suspended until the market stabilises.
Secondly, the measures aim to improve the investor protection framework, including management of price deviation, enhancing the responsibility of securities firms and asset management companies for managing price deviation.
According to the FSS, this will also strengthen risk disclosures and pre-trading education for investors, including overseas investors.
Lastly, the financial regulator aims to strengthen investment requirements to stabilise demand by increasing the minimum margin requirement for single-stock leverage products, and adjusting the trading unit size from 1 share to 20 shares.
The relevant authorities will implement these measures on a case-by-case basis to stabilise the market as soon as possible.
In addition, authorities will continuously monitor market conditions and are prepared to review additional measures should the market fail to stabilise.
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