Four South Korean government departments will hold a meeting on Thursday to discuss the risks of leveraged single-stock ETFs.
Korean financial regulators will hold a high-level meeting next Thursday under the F4 framework to discuss the risks and response measures for single-stock leveraged ETFs. Officials from the Ministry of Finance, the Financial Commission, the Financial Supervisory Institute, and the central bank will attend. With market volatility increasing, leveraged ETFs are viewed as one of the factors driving stock price fluctuations. Regulators are still coordinating proposed solutions internally and have not yet decided on a direction. Possible measures include raising margin requirements, limiting intraday price-change limits, and adjusting leverage multiples, but officials said these steps may only ease the problem and are unlikely to fundamentally address the underlying structural causes.
