FSS moves to cool single-stock ETF frenzy

South Korea's financial watchdog is preparing to tighten oversight of single-stock leveraged exchange-traded funds tied to Samsung Electronics and SK hynix, amid growing concerns that speculative trading is amplifying volatility in the stock market. According to industry sources Thursday, the Financial Supervisory Service will meet executives from asset management companies to discuss measures to cool the rapidly growing market. The talks are expected to focus on additional safeguards for levera

2026-06-25 16:09:17:00

Samsung financial affiliates top W100tr in capital for first time

Samsung's financial affiliates surpassed 100 trillion won ($65 billion) in capital for the first time at the end of 2025, accounting for most of the capital growth among South Korea's major financial groups as a stock market rally boosted investment gains. According to data released Wednesday by the Financial Supervisory Service, Samsung's capital rose to 100.5 trillion won from 69.5 trillion won a year earlier, while its capital adequacy ratio improved to 191.2 percent from 185.1 percent. The 3

2026-06-24 16:26:24:00

Korea's bid to bring ETF money home falls short

South Korea's attempt to lure money back home by approving domestic single-stock leveraged exchange-traded funds has shown little impact: Korean investors continue to hold large positions in competing Hong Kong-listed products. According to data released Tuesday by the Korea Securities Depository, Korean investors' holdings of Hong Kong-listed single-stock leveraged ETFs surged in May and remained elevated through June 21, even after Korea introduced competing products on May 27. At the end of A

2026-06-23 15:21:49:00

'Tail wagging the dog': FSS chief warns on leveraged ETF boom

Financial Supervisory Service Gov. Lee Chan-jin signaled possible regulatory measures on single-stock leveraged exchange-traded funds Monday, saying the products have delivered limited benefits while exposing retail investors to growing risks. "The effect has been minimal, but the side effects have become too significant," Lee said during a media briefing at the FSS headquarters in Seoul. Single-stock leveraged ETFs tied to Samsung Electronics and SK hynix were introduced last month to encourage

2026-06-22 15:01:47:00

Margin debt hits record as retail investors pile into Samsung Electronics, SK hynix

Debt-funded stock investing by South Korean retail investors is showing signs of overheating as the Kospi climbed to a record 9,000 mark, pushing outstanding margin loans to a record 38 trillion won ($24.8 billion) and prompting some brokerages to tighten margin lending rules. According to the Korea Financial Investment Association, outstanding margin loans in the domestic stock market stood at 38 trillion won as of Thursday, up 200 billion won from a day earlier. The balance has increased by mo

2026-06-19 18:19:57:00

JoongAng Ilbo enters first default status after missing repayment

South Korean newspaper publisher JoongAng Ilbo was classified as being in first default after failing to meet an early repayment demand on 22 billion won ($14.4 million) worth of commercial paper, according to a regulatory filing Friday. According to the Financial Supervisory Service's electronic disclosure system on Friday, JoongAng Ilbo said in a filing that it failed to make payment on Thursday due to insufficient deposits in its account. "A creditor presented the note for payment on June 18,

2026-06-19 16:39:37:00

ETF trading tops 30% of market turnover on strong retail demand

Exchange-traded funds now account for 30 percent of trading value on the Korean stock market, driven by surging demand from retail investors, according to a report by the Korea Investment Securities on Friday. Retail investors were net buyers of 64.3 trillion won ($41.9 billion) worth of listed shares and 55.3 trillion won worth of ETFs so far this year. By contrast, foreign investors were net sellers of about 111 trillion won worth of listed shares and ETFs combined. The scale of retail investo

2026-06-19 15:19:30:00

CSOP launches Hong Kong's first Kospi 200 ETF

CSOP Asset Management, Hong Kong's largest issuer of exchange-traded funds, on Thursday launched the city's first ETF tracking Korea's benchmark Kospi 200 Index, betting on growing global demand for Korean equities. The CSOP Kospi 200 ETF began trading on the Hong Kong Stock Exchange, becoming the only ETF listed in Hong Kong and the Asia-Pacific region outside Korea that tracks the Kospi 200. Investor demand appeared strong from the outset. According to CSOP, trading volume exceeded 30 billion

2026-06-18 15:05:50:00

Korean investors snap up W1.2tr of SpaceX shares on debut

South Korean retail investors snapped up more than 1 trillion won ($661 million) worth of SpaceX shares on the company's stock market debut, underscoring the intense local appetite for the Elon Musk-led space firm. It is rare for a single US-listed stock to attract more than 1 trillion won in net buying from Korean retail investors in a single session, making SpaceX one of the biggest overseas stock purchases by Korean retail investors in recent years. According to financial industry sources Wed

2026-06-17 14:54:16:00

SpaceX allocation fallout draws FSS probe

South Korea's Financial Supervisory Service is examining Mirae Asset Securities and several asset managers, including Korea Investment Management, over SpaceX-related investment products after they failed to secure IPO allocations despite marketing them as vehicles for gaining exposure to the highly anticipated listing. According to industry sources Tuesday, the FSS initially launched an on-site inspection of Mirae Asset Securities before escalating it into a formal examination. The probe also c

2026-06-16 18:10:51:00