Foreign high-frequency trading exposes limits of retail curbs

The Kospi remains vulnerable to sharp swings despite new deposit rules for single-stock leveraged products, as foreign high-frequency trading around Samsung Electronics and SK hynix exposes the limits of curbs focused primarily on retail investors. Trading value in the five largest single-stock leveraged products by market capitalization plunged 74 percent Friday, the first day the new rules took effect, according to the Korea Exchange. Retail investors sold a net 1 trillion won ($700 million) w

2026-08-03 15:10:32:00

Kospi whiplash calls to rein in rosy forecasts, margin trading

South Korea's roller-coaster stock market in July has prompted calls for tighter scrutiny of overly bullish brokerage research and stricter margin-lending rules, with industry officials arguing that inflated expectations and heavily leveraged trading amplified retail investors' losses amid sharp market swings. According to the Korea Exchange, the Kospi fell 22.19 percent in July after surging 101.14 percent in the first half. Circuit breakers were triggered on two consecutive trading days for th

2026-08-02 16:46:18:00

NPS eyes corporate pension oversight, stirring competition concerns

South Korea’s National Pension Service is seeking to serve as an outsourced chief investment officer, or OCIO, for corporate retirement pension funds, raising concerns that its entry could distort competition and expand state influence over private-sector capital. An OCIO oversees a pension fund’s investment strategy, selects and monitors asset managers and manages risks on behalf of the fund. According to financial industry sources on Thursday, the NPS submitted a proposal titled “Plan for Pub

2026-07-30 20:24:04:00

Leveraged Samsung, SK hynix products should fade out naturally: ETF pioneer

Bae Jae-kyu, CEO of Korea Investment Management and widely regarded as the "father" of South Korea's exchange-traded fund market, said Thursday that single-stock leveraged products tracking Samsung Electronics and SK hynix should be allowed to fade out naturally rather than be forcibly delisted. Bae said investors' best option was "not investing" in such products, warning that daily rebalancing and compounding effects could rapidly erode their value during periods of high volatility. "Getting th

2026-07-30 20:23:29:00

Korea’s ETF clampdown may push leverage demand overseas

As South Korea tightens rules on single-stock leveraged exchange-traded funds, overseas markets are expanding their lineup of leveraged products tied to Korean stocks — and positioning themselves to capture demand from investors seeking alternatives. The tougher domestic rules are expected to curb trading in Korea-listed products. But industry officials warn they may also create a “balloon effect,” shifting some retail demand toward the broader range of highly leveraged index and sector ETFs ava

2026-07-29 15:03:59:00

Can one portfolio fit Korea’s W500tr pension market?

South Korea is preparing to overhaul its 500 trillion won ($341.7 billion) retirement pension market to lift chronically low returns through professional fund management. But industry officials warn that the emerging design could place all workers in a single portfolio, regardless of their age or proximity to retirement. A portfolio invested 60 percent in stocks and 40 percent in bonds has emerged as the leading option in discussions, according to industry sources familiar with the discussions T

2026-07-28 14:57:27:00

Korea pushes leveraged ETF trades away from market close

Financial Services Commission Chairman Lee Eog-weon on Tuesday urged asset managers to distribute single-stock leveraged ETF rebalancing throughout the trading day, seeking to curb sharp price swings caused by heavy orders near the close. “More active efforts are needed to stabilize the market,” Lee said at a meeting with investment industry officials in Seoul. Fund managers currently conduct much of their rebalancing between 3:20 p.m. and 3:30 p.m. to deliver twice the daily return of underlyin

2026-07-28 11:26:15:00

SK Eternix shares surge on AI power demand hopes

Shares of SK Eternix, an energy unit of SK Group, have more than doubled over the past month as investors bet that AI-driven power demand will boost South Korea's renewable energy sector. The stock closed at 80,900 won($55.35) on Friday, up 114.6 percent from a month earlier. Over the same period, the Kospi fell 20.9 percent, while shares of SK hynix, the group's flagship chipmaker, dropped 31.2 percent. The rally accelerated this week, with the stock gaining 44.9 percent over the past five trad

2026-07-24 21:38:59:00

Margin loans fall to 3-month low as market correction deepens

South Korea's outstanding margin loans, a key gauge of leveraged stock investment by retail investors, fell to their lowest level in more than three months as the prolonged market correction prompted investors to scale back leveraged bets. According to the Korea Financial Investment Association on Friday, outstanding margin loans stood at 32.75 trillion won ($22.4 billion) as of Wednesday, coming down to its lowest level since April 9. Margin loans have been on a steady decline alongside the Kos

2026-07-24 21:37:39:00

Korea moves up tighter leveraged product rules to July 31

South Korea said Friday it would move up the implementation of stricter rules on single-stock leveraged products after criticism that the measures would take too long to take effect. The Financial Services Commission said it would implement stricter minimum deposit requirements, originally planned for August, earlier on July 31 to help stabilize demand for the products. The FSC unveiled the measures on July 16, raising the minimum cash deposit required to trade single-stock leveraged products to

2026-07-24 12:14:04:00