TechFlow news, on July 15, South Korean President Lee Jae-myung stated that after a significant surge in the South Korean stock market within a short period, time is needed to restore stability. Lee Jae-myung stated during a policy meeting with senior government officials in Seoul on Wednesday: "The domestic stock market in South Korea is currently quite unstable. Since the market has experienced an unprecedented significant surge in history within such a short time, it requires time and a certain degree of volatility to stabilize."
Lee Jae-myung acknowledged the recent controversies surrounding leveraged ETFs and urged the heads of the Financial Supervisory Service and the Korea Exchange to handle relevant issues promptly and formulate follow-up measures. Market participants expect that regulatory authorities will step in to curb the impact of such high-risk products on market stability, including possibly raising the minimum margin requirements for investing in leveraged ETFs. South Korea's largest opposition party, the People Power Party, accused the Lee Jae-myung administration on Tuesday of proposing ambitious stock market goals on one hand, while ignoring accumulating leveraged risks on the other, thereby encouraging excessive risk-taking behavior. (Jin10)
