Lee Jae-myung: South Korean Stock Market Needs Time to Stabilize After Rapid Surge, Urges Regulators to Address Leveraged ETF Controversy

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On July 15, South Korean President Lee Jae-myung stated that the South Korean stock market needs time to stabilize after a significant surge in a short period. During a policy meeting with senior government officials in Seoul on Wednesday, Lee remarked, "The domestic stock market in South Korea is currently quite unstable. Given that the market has experienced an unprecedented surge in such a short time, it requires time and a certain degree of fluctuation to stabilize." Lee acknowledged the recent controversies surrounding leveraged ETFs and urged the heads of the Financial Supervisory Service and the Korea Exchange to quickly address the related issues and formulate follow-up measures. Market participants expect regulators to take action to mitigate the impact of such high-risk products on market stability, including potentially raising the minimum margin requirements for investing in leveraged ETFs. The largest opposition party, the People Power Party, criticized Lee's government on Tuesday for proposing ambitious stock market goals while ignoring the accumulating risks of leverage, thereby encouraging excessive risk-taking behavior. (Jinshi)
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