After South Korea's regulators introduced regulatory policies for single-stock leveraged ETFs, the turnover of related products shrank sharply, and capital flows became the focus of investors' attention. There is also an expectation in the market: the short-term capital of some stocks that had previously been piled up will usher in a rearrangement, which is expected to improve the capital supply and demand environment in the KOSDAQ market. According to news from the securities industry on the 7th, the average daily turnover of single-stock leveraged ETFs reached 12.3 trillion won in July; after the regulatory measures were implemented on July 31, the turnover plummeted to about 3.2 trillion won. The average daily turnover fell further to around 1 trillion won in the past 3 trading days, and the transaction scale shrunk to one-tenth compared to the heyday. Park Woo-yeol, a researcher at Shinhan Investment Securities, analyzed: “The volume of single-stock leveraged ETF transactions has declined sharply since August due to concentrated liquidation of highly leveraged positions and the implementation of heavy regulatory measures.” There has also been a marked shift in the pattern of capital transactions. Statistics from the Korea Exchange and the Coscon ETF data platform show that from the 31st of last month to the previous trading day, KODEX 200 remained at the top of the ETF turnover list.

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