South Korean President Responds to Samsung and SK hynix Single-Stock Leveraged ETF Market Controversy: Relevant Supporting Measures Should Be Drafted and Improved as Soon as Possible

Deep Tide TechFlow news. On July 21, according to Korean media outlet NATE, South Korean President Lee Jae-myung said in today’s State Council meeting that the market controversy sparked by single-stock leveraged ETFs from Samsung Electronics and SK hynix requires financial regulators to formulate and refine the relevant supporting measures as soon as possible, and to study additional countermeasures if necessary. He said the market generally criticizes that single-stock leveraged ETFs “excessively amplify market volatility,” and urged the relevant authorities to “rapidly and fully improve the relevant rules and regulations.” He added that although regulators have taken certain measures, investors believe the related products have increased market volatility and declines, exposing efficiency issues at the policy level.

The Financial Services Commission of Korea explained that the size of overseas leveraged products has declined; South Korean individual investors’ overseas stock net investment also fell from about $4 billion for all of last year to $2.8 billion in the first half of this year, which has played a certain role in stabilizing the exchange rate.