The Ministry of Finance of the Republic of Korea announced the introduction of immediate regulatory measures aimed at limiting the circulation of exchange-traded investment funds with leverage for individual shares. The Agency plans to set strict limits on the volume of investments in such financial instruments, as well as significantly increase the associated trading costs. These products, which allow investors to repeatedly strengthen their positions in shares of specific companies, have come under the close attention of the regulator against the background of significant fluctuations in key market indices. Such volatility creates systemic risks for unqualified market participants, which provoked the prompt intervention of the financial authorities.

To ensure effective supervision, the government intends to introduce a system of round-the-clock monitoring of the stock market. Continuous monitoring will allow financial authorities to identify abnormal trading patterns and sudden capital flows in real time, which can destabilize the situation. In addition, the Ministry of Finance is actively developing a comprehensive legal framework that will empower the regulator to promptly apply special measures to stabilize the market in the event of economic emergencies or sharp fluctuations in quotations.

The introduction of these restrictions reflects consistent government efforts to protect retail investors and maintain macroeconomic stability amid recent stock market turmoil. Increasing the cost of leveraging and limiting maximum exposure are designed to discourage high-risk speculative strategies that can lead to sudden and disruptive price movements.