NEW-STYLE SOUTH KOREAN LEVERAGE ETF TRANSACTIONS DROPPED BY 90%

FOLLOWING THE FORMAL IMPLEMENTATION OF THE NEW REGULATIONS OF THE KOREAN FINANCIAL REGULATORY AUTHORITY TO INCREASE THE SINGLE-PLATFORM LEVERAGE AND REVERSE ETF INVESTMENT THRESHOLDS, THE SCALE OF THE RELATED TRANSACTIONS HAS SHRUNK SHARPLY. THE BASIC GUARANTEE WAS RAISED FROM THE ORIGINAL 10 MILLION WON TO 30 MILLION WON IN JUST TWO DAYS, AND THE AMOUNT OF THE TRANSACTION SHRUNK TO ONE TENTH BEFORE THE NEW RULE. LARGE NUMBERS OF INDIVIDUAL INVESTORS HAVE CONCENTRATED THEIR GAINS, AND THE MARKET HAS EXPERIENCED A RAPID SLOWDOWN IN OVERHEATING. KOREA EXCHANGE DATA ON AUGUST 3 SHOW THAT THE COMBINED VALUE OF 16 SINGLE-PLATFORM LEVERAGE/REVERSE ETF TRANSACTIONS WITH SAMSUNG ELECTRONICS AND SK HERCULES AS THE BOTTOM ASSET IS ABOUT 1.2 TRILLION WON. THE LAST TRADING DAY BEFORE THE DEPOSIT WAS RAISED (30TH MONTH) AMOUNTED TO 12.4 TRILLION WON, AND THE CURRENT SIZE IS ONLY ONE TENTH OF WHAT IT WAS AT THAT TIME; EVEN THE FIRST TRADING DAY COMPARED TO THE NEW REGULATIONS (ABOUT 3 TRILLION WON ON 31ST MONTH) HAS SHRUNK BY MORE THAN HALF. NO ONE SPECIES WAS TRADED FOR MORE THAN 1 TRILLION WON THAT DAY。