‘Too much of a hassle’: Tougher rules drive retail investors from South Korean leveraged chip ETFs
Regulatory tightening moves, including a rule to complete five-day simulated trading, key to sapping demand
Tighter regulatory rules in South Korea are discouraging retail investors from participating in leveraged chip ETFs, which target double the daily returns of chipmakers Samsung Electronics and SK Hynix. The latest requirement is a five-day simulated trading course, which investors must complete using a Windows-only program on their PCs.
Retail investors find the mandatory mock trading to be "too much of a hassle," with one investor stating that his work computer cannot download external programs. The mock trading exercises, along with a higher minimum deposit, have contributed to the collapse of trading value, now at 4 per cent of its June peak, and the first monthly outflow for these ETFs.
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