KB Securities has decided to discontinue its preferential deposit waiver benefits for single-stock leveraged and inverse products, which have been identified as factors increasing stock market volatility and are currently subject to measures being prepared by financial authorities.

According to the financial investment industry on July 16, KB Securities has notified its customers of changes to the basic deposit requirements for domestic single-stock leveraged ETFs and ETNs (Exchange Traded Funds and Exchange Traded Notes).

Previously, the required basic deposit varied based on the KB Star Club membership tier: 10 million won for the Family tier, 5 million won for the Best and Grand tiers, and a full waiver for VIP and VVIP tiers.

However, starting July 20, a uniform basic deposit requirement of 10 million won will apply to all customers, regardless of their membership tier, when trading domestic single-stock leveraged and inverse ETFs and ETNs.

This measure is interpreted as a response to growing concerns that single-stock leveraged products have been exacerbating stock market volatility.