Lee Jae-myung: After the rapid surge in the Korean stock market, more time is needed to stabilize; he urges regulatory authorities to address the controversy over leveraged ETFs

Deep Tide TechFlow news. On July 15, South Korean President Lee Jae-myung said that after the South Korean stock market surged sharply in a short period of time, it would need time to restore stability. Lee said on Wednesday during a policy meeting in Seoul with senior government officials: “The domestic stock market in South Korea is currently quite unstable. Because the market has experienced a historically unprecedented surge in such a short time, it needs time and a certain degree of volatility to move toward stability.”

Lee acknowledged recent controversy surrounding leveraged ETFs, urged the heads of the Financial Supervisory Service of Korea and the Korea Exchange to promptly address the related issues, and to formulate follow-up response measures. Market participants expect regulators to step in to curb the impact that such high-risk products could have on market stability, including possibly raising the minimum margin requirements for investing in leveraged ETFs. The largest opposition party, the People Power Party, accused the Lee Jae-myung administration on Tuesday of, on the one hand, proposing ambitious stock market goals, and on the other hand ignoring the leveraged risks that have been steadily accumulating, thereby encouraging excessive risk-taking. (Jinshi)