South Korean lawmaker warns KOSPI index "has become a casino," calls for delisting leveraged ETFs.

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Jinse Finance reported that on July 6, concerns among South Korean lawmakers over the risks of single-stock leveraged ETFs are growing, with an opposition lawmaker calling for the delisting of such products.
On Monday, Ahn Cheol-soo, a conservative People Power Party lawmaker and former presidential candidate, posted on social media calling for strong corrective measures, including delisting, for South Korean leveraged ETFs tracking Samsung Electronics and SK Hynix.
He wrote that the Korea Composite Stock Price Index (KOSPI) has "become a casino," and such products are "a complete policy failure that is eroding trillions of won in corporate value and national wealth every day."
His remarks have heightened concerns among policymakers and investors about the risks of these ETFs.
Such products aim to achieve twice the return of the underlying stock, and their mechanical rebalancing process forces them to buy more when prices rise and sell more when prices fall—potentially amplifying market volatility.
(Jinshi)
SAMSUNG2.10%
SKHYNIX-2.67%
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