South Korea Limits Single-Stock Leveraged Products to 20% of Assets

Authorities have introduced strengthened measures targeting single-stock leveraged products, identified as a key driver of volatility in the domestic stock market. Deputy Prime Minister and Minister of Finance and Economy Koo Yun-cheol announced on the 29th, following an emergency market situation review meeting, that the government will implement a total asset management plan limiting the proportion of single-stock leveraged products in an individual’s total financial investment assets to within 20%. This aims to prevent “concentrated investments,” where investors pour the majority of their assets into single-stock leveraged products. Deputy Prime Minister Koo stated, “We share concerns that concentrated investments in single-stock leveraged products are exacerbating market volatility.” Additionally, financial authorities are reviewing plans to lower the current 2x leverage ratio and restrict new purchases to professional investors. Professional investors are defined as those who have maintained an average monthly balance of 50 million Korean won in financial investment products for at least one year within the past five years and meet income, asset, and expertise requirements. The goal is to block general investors from accessing these high-risk products. [https://www.chosun.com/english/market-money-en/2026/07/30/6J3HNBTKLNCTLHHGPJNLQWQSEE/](https://www.chosun.com/english/market-money-en/2026/07/30/6J3HNBTKLNCTLHHGPJNLQWQSEE/)