KOREA MINISTRY OF FINANCE: WILL LIMIT LEVERAGE ETF TRANSACTIONS AND INCREASE RELATED TRANSACTION COSTS

ON 29 JULY, FOLLOWING AN EMERGENCY MEETING, THE MINISTRY OF FINANCE OF KOREA STATED THAT IT WAS COMMITTED TO TAKING ADDITIONAL MEASURES TO STABILIZE THE STOCK MARKET AND WOULD TAKE MEASURES TO LIMIT LEVERAGE ETF TRANSACTIONS. KOREA WILL MAINTAIN A 24-HOUR STOCK MARKET MONITORING SYSTEM AND ESTABLISH A LEGAL BASIS FOR MARKET STABILIZATION MEASURES IN EMERGENCY SITUATIONS. AT THE SAME TIME, THE REPUBLIC OF KOREA WILL STRENGTHEN THE REGULATION OF LEVERAGE ETF TRANSACTIONS, LIMIT THE INVESTMENT EXPOSURE OF BULK INVESTORS TO LEVERAGE ETF, IMMEDIATELY INTRODUCE ADDITIONAL REGULATORY MEASURES FOR SINGLE-STOCK LEVERAGE ETF, AND RAISE THE RELATED TRANSACTION COSTS TO CURB ETF SPECULATION. KIM XIAN