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The South Korean financial industry is moving to cushion the market impact of single-stock leveraged exchange-traded products through new rebalancing rules, while regulators prepare tighter curbs after a sharp sell-off deepened concerns that the instruments were amplifying swings in the country's largest chip stocks. The Korea Financial Investment Association said Thursday that asset managers would spread rebalancing trades, currently concentrated near the closing bell, across regular trading ho
Mirae Asset Global Investments’ assets under management surpassed 678 trillion won ($471 billion), driven by strong inflows into its exchange-traded funds and growth across pensions and alternative investments. The milestone came at the end of June, following rapid growth from 250 trillion won in late 2022 to 500 trillion won in 2025. This is attributed to what it describes as a “killer product” strategy, which provides differentiated investment solutions to global investors. Its Tiger US S&P 5
As South Korea tightens rules on single-stock leveraged exchange-traded funds, overseas markets are expanding their lineup of leveraged products tied to Korean stocks — and positioning themselves to capture demand from investors seeking alternatives. The tougher domestic rules are expected to curb trading in Korea-listed products. But industry officials warn they may also create a “balloon effect,” shifting some retail demand toward the broader range of highly leveraged index and sector ETFs ava
South Korean stocks extended their historic sell-off Wednesday: The Kospi once plunged nearly 13 percent to below 5,300 and triggered a circuit breaker for a second straight day amid heavy selling by retail and foreign investors. The Kospi ended regular trading at 5,663.24, down about 6 percent, after opening 1.09 percent higher at 6,089.11. The benchmark quickly reversed course and sank to 5,262.77, down 12.63 percent from the previous close. The slide took the index below the 5,300 mark for th
South Korea's abrupt reversal over single-stock leveraged funds has revived a broader question for global investors: whether unpredictable policymaking itself contributes to the country's long-standing equity market discount. The speed with which authorities moved from approving the products to tightening the rules — amid conflicting comments from senior officials — has turned the episode into a test of regulatory credibility. The concern is not that regulators strengthened safeguards for high-r
Earlier this year, South Korea emerged as the world's best-performing stock market as an artificial intelligence-driven memory chip boom propelled the country's top chipmakers Samsung Electronics and SK hynix to record highs. The chip rally, however, quickly unraveled as investors grew concerned that Big Tech companies would scale back AI infrastructure spending. The two chip giants have since fallen more than 30 percent from their peaks, dragging down the benchmark Kospi. Yet what stood out was
Seoul stocks crashed Tuesday, with the benchmark Kospi tumbling nearly 11 percent as a selloff in chip heavyweights intensified. The Kospi closed the regular session at 6,023.66, down 10.84 percent from the previous day. Losses mounted from the opening bell, triggering a sell-side sidecar at around 9:06 a.m. and later a circuit breaker as the decline deepened. A sidecar briefly suspends program trading, while a circuit breaker halts all trading. The index briefly fell as low as 5,992.91, slippin
South Korea is preparing to overhaul its 500 trillion won ($341.7 billion) retirement pension market to lift chronically low returns through professional fund management. But industry officials warn that the emerging design could place all workers in a single portfolio, regardless of their age or proximity to retirement. A portfolio invested 60 percent in stocks and 40 percent in bonds has emerged as the leading option in discussions, according to industry sources familiar with the discussions T
Financial Services Commission Chairman Lee Eog-weon on Tuesday urged asset managers to distribute single-stock leveraged ETF rebalancing throughout the trading day, seeking to curb sharp price swings caused by heavy orders near the close. “More active efforts are needed to stabilize the market,” Lee said at a meeting with investment industry officials in Seoul. Fund managers currently conduct much of their rebalancing between 3:20 p.m. and 3:30 p.m. to deliver twice the daily return of underlyin
Hana Securities has begun offering Korean stock trading to clients of Hong Kong-based Futu Securities, expanding its push to draw more overseas investors into the domestic market. The service allows nonresident investors to buy and settle Korean shares through Futu without opening a separate account with a Korean brokerage, Hana Securities said Monday. Trading began on a trial basis for preregistered clients in June and was expanded to all Futu customers on Friday. Futu, which operates the Futub
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