Korean Financial Services Commission: Will soon release supplementary measures for single-stock leveraged ETFs for SK Hynix, Samsung, and others

Deep Tide TechFlow message: On July 16, according to Korean media EToday, Lee E-Yuan, Chairman of the Financial Services Commission of South Korea, announced that additional plans will soon be released for single-stock leveraged ETFs such as those tied to Samsung Electronics and SK Hynix, which have recently been accused of amplifying volatility in the South Korean stock market. At present, the regulatory authorities are closely assessing the impact of single-stock leveraged products on market volatility and are accelerating the development of more complete measures. However, whether to take actions such as temporary trading halts still requires careful weighing of potential market impact to avoid causing greater adverse effects.

Lee E-Yuan added that recent volatility in South Korea’s stock market has intensified mainly due to factors including the expansion of volatility in the global semiconductor industry, the industry quickly entering a super cycle, and related stocks seeing sharp gains in the short term. Samsung Electronics and SK Hynix have increased their weights in the Korea Composite Stock Price Index (KOSPI), and the volatility of their share prices has also significantly strengthened its impact on the overall market.