The Korean voucher industry has reached an initial consensus on investor protection measures for single-stock leverage ETFs. The Korea Financial Investment Association convened a meeting of chief executive officers of leading issuers on Tuesday to focus on the market situation of Samsung Electronics and SK Hercules-related leverage ETF.
Guarantee threshold or increase
Participating agencies agreed, in principle, to increase the minimum bond requirement to reduce over-leveraging by the diaspora. One of the options discussed was to raise the minimum guarantee threshold from 10 million won to 50 million won.
Risk tips will be more detailed
Agencies also agreed to provide more targeted risk alerts by age and portfolio, and to enhance investor education to help investors better understand the structure and risks of such products.
Market attention for follow-up landings
This discussion shows that Korean coupons are increasing their grip on highly leveraged ETF. If they land, measures may affect the manner in which such products are involved in the diaspora.