Controversy Over Shortened Review Period for 'Semiconductor Leverage' ETFs… Exchange: 'It's Not True'

Regarding criticism that the listing review period for 'Samsung and SK Hynix Leverage' ETFs—products that double the price movements of specific stocks like Samsung Electronics and SK Hynix—was significantly shorter than for other ETFs, the Exchange rebutted claims of procedural flaws. The office of Rep. Park Dae-chul of the People Power Party revealed that while the average review period for ETFs listed this year was 62 days, the 16 Samsung Electronics and SK Hynix leverage ETFs were approved in just 29 days.

The Korea Exchange stated that while the preliminary listing review for major domestic index-based ETFs over the past five years took an average of 11 days, the preliminary review for single-stock leverage products based on Samsung Electronics and SK Hynix took 13 days. The Exchange explained that whereas other ETFs, such as overseas index and mixed asset types, took an average of 62 days from preliminary review application to listing over the past five years, the Samsung and SK Hynix leverage products took 29 days from application to listing.

As single-stock leverage products carry high volatility and a significant risk of loss for investors, the appropriateness of the review period and procedures serves as a crucial benchmark for future approval standards for similar products and the establishment of investor protection measures.