The Korea Exchange and brokerage firms earned 117.26 billion won in commission revenue from single-stock leveraged and inverse ETF trades [1].
The surge in fees highlights how high-risk financial products can generate massive profits for intermediaries while increasing volatility for individual investors. This trend has led South Korean financial authorities to tighten access to these instruments to protect retail traders.
The revenue was generated over approximately two months, beginning with the launch of the ETFs on May 27, 2026, and continuing through the end of June 2026 [1]. These products focused on 16 specific stocks [1]. During this period, the average daily commission income reached 620 million won [1].
Of the total earnings, the combined sum of trading and clearing fees amounted to 27.911 billion won [1]. Trading fees accounted for 24.13 billion won, while clearing and settlement fees contributed 3.771 billion won [1].
Financial regulators said that these leveraged and inverse ETFs triggered excessive trading among investors. This spike in volume directly increased the fees collected by the KRX and brokerage firms. In response to concerns over heightened market volatility, authorities raised the basic deposit requirement for these trades to 30 million won in cash [1].
The move to increase the deposit threshold is intended to limit the participation of inexperienced retail investors who may not be able to absorb the losses associated with leveraged products. By raising the barrier to entry, the government aims to curb the speculative trading patterns that fueled the recent windfall for financial institutions.
“The Korea Exchange and brokerage firms earned 117.26 billion won in commission revenue.”
The rapid accumulation of fees by the KRX and brokers underscores a systemic tension in the South Korean market: the profitability of high-churn financial products versus the stability of retail portfolios. By increasing the cash deposit requirement, regulators are attempting to shift these high-risk instruments away from small-scale speculators and toward institutional or high-net-worth investors who can better manage the inherent risks of leverage.
