Financial authorities are troubled as they review regulations on single-stock leveraged products

Financial authorities are reviewing countermeasures in response to criticism that singlestock leveraged products, which bet 2x on the stock prices of Samsung Electronics and SK Hynix, are increasing volatility in the domestic stock market. However, it is being judged that delisting or immediate strong regulation is realistically difficult. Since the net assets of this product have already reached 15 trillion won, it does not meet the exchange's general delisting requirements. There are also exceptional provisions for discretionary delisting on the grounds of public interest and investor protection, but the criteria are vague and there are no actual cases of application, so it has been pushed down from the list of priority review items. Instead, inside and outside the financial authorities, adjustments to entry barriers such as raising the minimum deposit and strengthening investor education are being discussed. The current minimum deposit is 10 million won, and general and advanced education must be completed in advance. However, it is also pointed out that since many investors have already flowed in, the effect of such measures may be limited.