Minimum deposit of $20,200 triples to $60,600 for trading single-asset ETFs. Investors must pay full cash for these instruments. Previously, investors could cover up to 70% of the minimum deposit using existing shares' value.

The change makes it more expensive to access ETFs and limits use of underlying titles as component of coverage needed to start or resume trading activities. These restrictions affect Samsung Electronics and SK hynix ETFs, which are centered on South Korea's chip industry. Unlike conventional leveraged funds built on broader indices like KOSPI 200 or S&P 500, these products follow a single stock and allow doubling daily returns both upwards and downwards.

Mechanism has worsened losses during recent semiconductor slump. In last month, according to numbers published by Korea Times, Samsung Electronics lost 24.3%, while SK hynix lost 19.5%. During same period, KODEX Samsung Electronics Leverage ETF fell 48.4%, while KODEX SK hynix Leverage ETF declined 45.6%.

Size of retracement has fueled protests among small savers. On Naver community dedicated to investment stocks, user claimed that if authorities cannot solve problem, such products should be withdrawn from market. Another participant said he lost nearly 60% investing personally in these leverage ETFs.

He argued new measures wouldn't restore order in trading. One of criticisms is tightening affects mostly retail operators without directly intervening on instrument characteristics. Many investors, according to Korea Times, think restrictions don't adequately address risk that amplifies volatility of the market.

Authorities instead increased financial barrier to access and imposed full cash payment for instruments. Products have recorded significant volume in short time frame. Demand was mainly driven by interest of individual investors seeking amplified exposure to Samsung Electronics and SK hynix, indicated as two major producers of South Korean semiconductors.

Exposure doubled means a negative session for one stock would theoretically double loss for related fund, whereas upswing produces amplified gain. Recent decline of titles made this effect more visible and concentrated attention on risks associated with using these instruments. Case also reached Parliament's attention.

Some legislators invited authorities to evaluate further provisions, according to numbers published by Korea Times. Source doesn't specify which additional steps are being studied or whether cancellation of these products could be considered. It remains to check if tripling deposit and requiring full cash purchase reduces participation of savers or volatility linked to these ETFs.

No times given for revising rules nor data provided after introduction of these restrictions. Legislators' requests leave room for potential new regulatory intervention.