TechFlow news, July 17, according to Yonhap News, the South Korea Financial Services Commission (FSC) stated that single-stock leveraged ETFs played a significant role in preventing capital from flowing to overseas stock markets. The FSC also pointed out that the volatility of U.S. and Japanese semiconductor stocks has also significantly increased recently, and responded to the controversy that single-stock leveraged ETFs are the "culprit" behind the recent intensification of volatility in the South Korean stock market.
Byun Je-ho, Director of the FSC Capital Market Bureau, stated: "Part of the investment demand that originally flowed to overseas markets has returned domestically, and it indeed played a role in preventing new capital from continuing to flow overseas." He also said: "I believe that since the product was listed, the intensification of volatility in the South Korean stock market cannot be explained solely by single-stock leveraged ETFs. Against the backdrop of capital in the South Korean market being highly concentrated in Samsung Electronics and SK Hynix, repeated fluctuations in expectations and concerns regarding the global semiconductor industry outlook have led to the expanded volatility of related products." (Jin10)
