Korean Single-Stock Leveraged ETF Volumes Plummet 89.8% Post-Regulation

Strict margin rules slash domestic leveraged ETF trading by nearly 90%, while retail investors shift $2.5B into US-listed high-leverage funds like SOXL.

Woofun AI data shows that South Korean single-stock leveraged and inverse ETF trading volumes collapsed by 89.8% following the implementation of stricter regulatory oversight. The total trading value for these 16 listed products dropped from 13.0361 trillion Korean won on July 15 to 1.3329 trillion won by August 4, driven by higher base margin requirements and new investment limits.

Despite the domestic contraction, retail investor demand for leverage persists through overseas channels. Between July 15 and August 4, the Direxion Daily Semiconductor Bull 3X ETF (SOXL) recorded the highest net purchases by Korean investors, totaling $2.48789 billion. The Tesla 2x Leveraged ETF (TSLL) ranked sixth with $214.36 million in net buys, while the Korea 3x Leveraged ETF (KORU) secured the eleventh position with inflows of $130.95 million.