South Korea is weighing new regulations on single-stock leveraged ETFs, including reduced leverage ratios and higher minimum investments, following steep retail losses after a market rally.
South Korea's finance ministry considers capping single-stock leveraged ETFs at 20% of retail investors' portfolios to reduce stock market volatility.
Financial authorities have uncovered two cases of fraudulent trading, including a stock manipulation ring involving an accountant and a current journalist, and a separate case involving a journalist. Two individuals have been arrested and sent to prosecution, along with five others facing non-detention charges.
South Korea's financial authorities pledge to combat excessive volatility in the foreign exchange market, blaming speculative transactions like NDFs for the won's sharp decline against the USD, despite strong economic fundamentals.
Japan's Financial Services Agency and Bank of Japan have requested financial institutions to implement nine short-term measures against AI-driven cyberattacks, emphasizing the need for top-level management to address AI threats and prioritize system vulnerabilities.
South Korea's financial authorities are urging investors to exercise extreme caution regarding new single-stock leveraged products linked to Samsung Electronics and SK Hynix, set to launch on May 27th. These high-risk products, which track daily volatility at +/- 2x, are unsuitable for long-term investors or those with limited loss tolerance due to amplified gains and losses, and the absence of diversification.
Japan's Financial Services Agency and Bank of Japan have issued guidelines to financial institutions on preparing for threats posed by new AI technologies, including the possibility of proactively shutting down systems if risks escalate.
Financial Stability Board report reveals tech, healthcare and services sectors as the biggest borrowersThe private credit industry’s role in fuelling the AI boom could backfire, with a sharp correction leading to “sizeable” losses, the Financial Stability Board has warned.A new report into private credit by the global watchdog, which monitors financial authorities including central banks in 24 countries, found that the healthcare, services, and tech sectors have become the biggest borrowers of private credit. Continue reading...
South Korea's Financial Services Commission approved a 560 billion-won investment in Upstage Co., a Korean AI unicorn startup valued at over 1 trillion won. This marks the second direct investment from the Korea National Growth Fund, which aims to nurture startups in strategic industries including AI, bio, and semiconductors.
