TechFlow news, July 21, according to Korean media NATE, South Korean President Lee Jae-myung stated at today's State Council meeting regarding the market controversy triggered by Samsung Electronics and SK Hynix single-stock leveraged ETFs that financial regulatory authorities should formulate and improve relevant supporting measures as soon as possible, and study the launch of further countermeasures if necessary. He stated that the market generally criticizes single-stock leveraged ETFs for "excessively amplifying market volatility" and requested relevant departments to "quickly and fully improve the relevant regulations." He indicated that although regulatory agencies have taken certain measures, investors believe that related products have exacerbated market volatility and declines, exposing efficiency issues at the policy level.
The South Korean Financial Committee explained that the scale of overseas leveraged products has declined, and the net investment amount of Korean individual investors in overseas stocks has also decreased from approximately 40 billion USD for the full year last year to 2.8 billion USD in the first half of this year, playing a certain role in stabilizing the exchange rate.
