South Korea requires mock trading before retail leveraged ETF orders
South Korea's financial regulators have imposed new access rules for first-time retail traders of single-stock leveraged ETFs and ETNs, effective August 19, 2026. New investors must complete five separate days of at least one hour of simulated trading on the KRX platform, sit three hours of educational training on leveraged product mechanics, and deposit 30 million won before placing a real order. The measures follow a 76% Kospi rally, the May 27, 2026 launch of single-stock leveraged ETFs, peaks in daily volumes above 10 trillion won and AUM at 17.6 trillion won, and reported losses of about half on some holdings with 1.4 trillion won net redemptions in early August.
First-time leveraged ETF traders must deposit 30 million won.
Context
The Kospi rose 76% in 2025 and then corrected in 2026. Single-stock leveraged ETFs launched on May 27, 2026 and drew large retail flows. Regulators now require practice and a cash deposit and trading volumes may stay lower after the rule.
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