The Financial Services Commission said Friday that it moved up the implementation date from early August to July 31 after consultations with financial authorities and the securities industry.
The measure is intended to stabilize demand for high-risk leveraged products.
The requirement, part of a regulatory package announced on July 16, applies to domestically and overseas-listed ETFs and exchange-traded notes that track individual stocks.
Under the current framework, investors must maintain a minimum deposit of 10 million won and may use stocks, ETFs and bonds to meet the requirement at up to 70 percent of their market value.
From July 31, securities posted in place of cash will no longer be recognized.
Brokerages will also be barred from lowering the minimum requirement based on a client's trading experience, although they may impose a requirement above 30 million won.
Proceeds from securities sales will count toward the requirement only after settlement, typically two business days after the transaction.
Loans secured against unsettled sale proceeds will also be excluded from the calculation.
The requirement will apply when existing investors make additional purchases, although they will be allowed to sell products they already hold regardless of their cash balance.
The FSC said it would recommend that brokerages unable to complete the necessary system upgrades by the deadline restrict new transactions in the products.
Separate measures aimed at narrowing gaps between market prices and underlying asset values will take effect on Aug. 19 following revisions to Korea Exchange rules.
The changes will strengthen liquidity providers' pricing obligations and accelerate the designation of products as requiring investor caution.
Authorities are also considering bringing forward a plan to raise the minimum order size to 20 units from one, originally scheduled for November.
A suspension of new product listings and a ban on advertising took effect after the regulatory package was announced on July 16.
The FSC said it would continue to monitor market conditions and consider additional measures if demand for the products fails to stabilize.
Copyright ⓒ Aju Press All rights reserved.