Lee Jae-myung: After the rapid surge in South Korea’s stock market, it needs time to stabilize; he urges the regulatory authorities to address the controversy over leveraged ETFs

robot
Abstract generation in progress
Golden Finance reported that on July 15, South Korea’s President Lee Jae-myung said that after the South Korean stock market surged sharply in a short period, it needs time to regain stability. On Wednesday, Lee said at a policy meeting in Seoul with senior government officials: “South Korea’s domestic stock market is currently quite unstable. Because the market has experienced historically unprecedented large gains in such a short period of time, it needs time and a certain degree of volatility to become stable.” Lee acknowledged recent controversy surrounding leveraged ETFs, urged the head of the Financial Supervisory Service of Korea and the leadership of the Korea Exchange to quickly address the related issues, and to formulate follow-up response measures. Market participants expect regulators to step in to curb the impact of these high-risk products on market stability, including possibly raising the minimum margin requirements for leveraged investment ETFs. On Tuesday, South Korea’s largest opposition party, the People Power Party, accused the Lee Jae-myung administration of, on the one hand, proposing ambitious stock market targets and, on the other hand, ignoring the leverage risks that have been accumulating, thereby encouraging excessive risk-taking. (Jin Shi)
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments