Policy Chief Kim Yong-beom Reviews Market Impact of Single-Stock Leveraged ETFs, Eyes Supplementary Measures if Necessary

Presidential Office Policy Chief Kim Yong-beum stated on the 10th that he would review the situation at a market situation check meeting (F4) involving relevant ministries regarding concerns over market volatility following the introduction of single-stock leveraged ETFs (Exchange Traded Funds), and would consider supplementary measures if necessary.

It has been confirmed that the net buying volume by individual investors since the launch of single-stock leveraged ETFs has reached approximately 8.9 trillion won. During the same period, the KOSDAQ index fell from an intraday high of 1205.12 points on May 26 to 778.17 points on July 9, marking expanded market volatility and a concentration on specific stocks.

According to internal financial sector sources, controversy has arisen as Financial Supervisory Service (FSS) Governor Lee Chan-jin expressed remorse regarding the introduction during a press briefing in June, and the opposition party has called for a national inspection. The industry views the likelihood of an immediate product delisting as low due to the failure to meet delisting requirements and concerns over damaging market trust. Meanwhile, Governor Lee is scheduled to hold a meeting with CEOs of major asset management companies on the 13th to discuss issues in the ETF market.