Lee Jae-myung: After South Korea’s stock market surged, it needs time to stabilize; he urges regulators to address the controversy over leveraged ETFs

robot
Abstract generation in progress
ME News, July 15 (UTC+8): South Korean President Lee Jae-myung said that after a sharp surge in the Korean stock market in a short period of time, it needs time to restore stability. On Wednesday, Lee said 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 an unprecedentedly large surge in such a short time, it needs time and some degree of volatility to become stable." Lee acknowledged recent controversy surrounding leveraged ETFs, urged the heads of the Korea Financial Supervisory Service and the Korea Exchange to quickly address the related issues, and to develop follow-up response measures. Market participants expect regulators to step in to curb the potential shock that such high-risk products could cause to market stability, including possibly raising the minimum margin requirements for investing in leveraged ETFs. The largest opposition People Power Party on Tuesday accused the Lee Jae-myung administration of, on one hand, proposing ambitious stock market goals, and on the other hand ignoring the continuously accumulating leverage risks—thereby encouraging excessive risk-taking. (Jin10) (Source: ODAILY)
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
  • Pinned