South Korean lawmakers urge tighter monitoring of single-stock leveraged ETFs to discuss legislative preparations for the “Digital Asset Basic Act”

July 21—According to Yonhap News Agency, the National Assembly’s Finance and Economy Committee held a party-government consultation meeting. The ruling Democratic Party urged the Financial Services Commission to strengthen key monitoring of single-stock leveraged ETFs and, if necessary, add appropriate supplementary measures.

Previously, this type of product had been identified as a major factor that exacerbates volatility in the KOSPI index. On the 16th, the Financial Services Commission announced supplementary measures, raising the basic deposit requirement from 10 million won to 30 million won and expanding the minimum trading unit.

After the meeting, Park Sang-hyuk, a staff officer of the ruling party’s Finance and Economy Committee, said that the Financial Services Commission briefed the committee on the relevant measures released last Thursday. He also urged the Financial Services Commission to strengthen communication with the Finance and Economy Committee when formulating policies.

Park Sang-hyuk said that the day’s consultation also included discussions on the “Digital Asset Basic Act.” Several lawmakers have already put forward legislative suggestions, and showed strong interest in the bill.

Considering that the U.S. “GENIUS Act” is scheduled to formally take effect next year, and there are various uncertainties regarding the impact on the market after the law takes effect, all parties generally believe that the government should make legislative preparations in advance and decide to hold further discussions on this matter.

Park Sang-hyuk also noted that the Finance and Economy Committee’s operations in the first half of the year were not smooth, resulting in a backlog of multiple legislative tasks. He called on financial authorities to develop improvement plans as soon as possible so that discussions on bank governance reforms can proceed transparently.

He further urged that, in follow-up consultations with the Financial Supervisory Service, authorities should comprehensively manage and supervise risks that may be triggered by rising interest rates to ensure that ordinary members of the public are not harmed during the loan process.

#单股杠杆ETF # ETF regulation