Thursday April 23 2026
News Source: Global Exchanges
Focus: General - Global Exchanges
Type: General
Country: Korean Republic
On 21st April 2026, the Financial Services Commission announced that revisions to the Enforcement Decree of the Financial Investment Services and Capital Markets Act (FSCMA) allowing the introduction of single-stock exchange-traded funds (ETFs) have been approved by the government. The revised rules will upgrade the rules on the domestic ETF market and help to close the regulatory gap existing between the domestically listed ETFs and the overseas listed ETFs. The revised rules will be promulgated and become effective from April 28.
Key Revision Details
- Allowing the introduction of single-stock ETFs (same rules to be applied on ETNs)
- Facilitating the development of diverse types of ETFs including covered call ETFs
Strengthening Investor Protection
Considering the higher level of risk involved in single-stock leveraged ETFs and ETNs, the Korea Financial Investment Association (KOFIA) has updated its own rules to ensure an enhanced level of investor protection measures.
- Requiring enhanced prior learning session and base deposit rate
- Ensuring clear description of products to prevent confusion
- Other investor protection measures
Further Plan
The revised rules will be promulgated and become effective from April 28. Single-stock leveraged ETFs will then become listed for trading from as early as May 22 after going through the securities registration and listing review process.
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