Ahead of the launch of single-stock leverage products, interest from individual investors is expanding quickly. Despite being high-risk products, more than 10,000 people have completed the pretrade education, confirming pent-up demand to invest.
According to the Korea Institute of Financial Investment on the 6th, a total of 12,412 people had applied by on the 5th for the "pretrade education for single-stock leverage/inverse listed products," which opened on on the 28th. Of those, 11,303 completed the coursework. More than 2,000 people signed up on the first day alone, and participation has continued to rise in step with the recent market rally.
Single-stock leveraged exchange-traded funds (ETF) are scheduled to list on the domestic market for the first time on the 22nd. Eight managers, including Samsung, Mirae Asset, Korea Investment, KB, Shinhan, Hanwha, Kiwoom, and Hana Asset Management, will participate, with up to 16 products to be launched. Although there is still time until listing, investors are taking courses in advance to prepare for transactions.
These products are structured to track ±2 times the one-day return, with Samsung Electronics and SK hynix as the underlying assets. Gains expand in a rising market, but losses can also accelerate in a downturn, classifying them as high-risk products. Financial authorities introduced mandatory pre-education and a minimum basic deposit requirement of 10 million won in consideration of these risks.
Completing pre-education is mandatory to invest in these products. If there is no prior experience investing in leveraged exchange-traded products, a total of two hours must be completed, including the "domestic and overseas leverage ETF guide" and the "single-stock leverage/inverse education." Those with prior investment experience only need to complete a one-hour advanced course.
Earlier this year, when the KOSDAQ index surged, demand for leveraged products also spiked, causing delays in access to the education site. At the time, demand concentrated on investing in the KOSDAQ150 leveraged product, temporarily paralyzing the server. Since then, the Korea Institute of Financial Investment expanded servers and improved the system by separating the education menu.