{"id":87852,"date":"2026-07-16T02:34:39","date_gmt":"2026-07-16T02:34:39","guid":{"rendered":"https:\/\/www.europesays.com\/korea\/87852\/"},"modified":"2026-07-16T02:34:39","modified_gmt":"2026-07-16T02:34:39","slug":"south-korea-to-announce-measures-on-single-stock-leveraged-etfs-soon","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/korea\/87852\/","title":{"rendered":"South Korea to announce measures on single-stock leveraged ETFs soon"},"content":{"rendered":"<p data-testid=\"article-description\">Measures to address such funds and ensure market stability are being discussed, the nation\u2019s top financial regulator said<\/p>\n<p>Published Thu, Jul 16, 2026 \u00b7 10:08 AM<\/p>\n<p class=\"whitespace-pre-wrap break-words mb-4 md:mb-6\" data-testid=\"article-paragraph-component\">[HONG KONG] South Korea will soon announce measures to address the <a class=\"text-verticals-btblue underline hover:text-blue-500\" data-testid=\"article-annotation-link-component\" href=\"https:\/\/www.businesstimes.com.sg\/companies-markets\/capital-markets-currencies\/south-koreas-surging-equity-volatility-draws-meme-stock-comparisons\" target=\"_blank\" rel=\"nofollow noopener\">controversy over leveraged exchange-traded funds (ETFs)<\/a> tied to Samsung Electronics and SK Hynix, the nation\u2019s top financial regulator said.<\/p>\n<p class=\"whitespace-pre-wrap break-words mb-4 md:mb-6\" data-testid=\"article-paragraph-component\">Financial Services Commission chairman Lee Eog\u2011weon said in a YouTube program that the regulator was in close talks with the finance ministry, Bank of Korea, and the Financial Supervisory Service to roll out steps to protect investors and ensure market stability.<\/p>\n<p class=\"whitespace-pre-wrap break-words mb-4 md:mb-6\" data-testid=\"article-paragraph-component\">Lee did not provide any specifics.<\/p>\n<p class=\"whitespace-pre-wrap break-words mb-4 md:mb-6\" data-testid=\"article-paragraph-component\">When asked whether a temporary trading halt for such ETFs was being considered, Lee said authorities are \u201creviewing the matter comprehensively, given the potentially greater side effects such a move could entail\u201d.<\/p>\n<p class=\"whitespace-pre-wrap break-words mb-4 md:mb-6\" data-testid=\"article-paragraph-component\">Pressed on whether leveraged ETFs had <a class=\"text-verticals-btblue underline hover:text-blue-500\" data-testid=\"article-annotation-link-component\" href=\"https:\/\/www.businesstimes.com.sg\/companies-markets\/capital-markets-currencies\/samsung-sk-hynix-and-leveraged-etfs-drive-70-korea-trading-drawing-criticism\" target=\"_blank\" rel=\"nofollow noopener\">amplified volatility<\/a>, he sidestepped a direct answer and noted that \u201cit\u2019s a matter of degree\u201d.<\/p>\n<p class=\"whitespace-pre-wrap break-words mb-4 md:mb-6\" data-testid=\"article-paragraph-component\">The remarks come after President Lee Jae Myung on Wednesday (Jul 15) said the stock market has become \u201cquite unstable\u201d following an unprecedented rally, and urged regulatory authorities to prepare follow-up measures.<\/p>\n<p class=\"whitespace-pre-wrap break-words mb-4 md:mb-6\" data-testid=\"article-paragraph-component\">A meeting between finance-related government bodies will be held as early as Thursday afternoon, Yonhap Infomax reported.\u00a0<\/p>\n<p class=\"whitespace-pre-wrap break-words mb-4 md:mb-6\" data-testid=\"article-paragraph-component\">The Kospi Index fell more than 5 per cent on Thursday as SK Hynix tumbled 10 per cent and Samsung Electronics also fell.<\/p>\n<p class=\"whitespace-pre-wrap break-words mb-4 md:mb-6\" data-testid=\"article-paragraph-component\">Leveraged ETFs have been blamed by many market participants for intensifying swings due to the daily rebalancing flows required to maintain promised return ratios.<\/p>\n<p class=\"mb-6 border-b border-gray-250 pb-4 font-poppins text-4xs font-medium tracking-10 text-gray-515\">SEE ALSO<\/p>\n<p><a class=\"block h-full w-full\" href=\"https:\/\/www.businesstimes.com.sg\/companies-markets\/capital-markets-currencies\/south-koreas-surging-equity-volatility-draws-meme-stock-comparisons?ref=article-see-also\" data-discover=\"true\" rel=\"nofollow noopener\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"relative z-10 h-full w-full object-cover\" src=\"https:\/\/www.europesays.com\/korea\/wp-content\/uploads\/2026\/07\/92f479562521cd5d9b69155a04acd152523362c7261156f920ee5e398a168b11.webp\" alt=\"With Samsung and SK Hynix carrying outsized influence, swings in AI sentiment can quickly become index-level events, says Vantage Global Prime.\" width=\"2000\" height=\"1334\"\/><\/a><a class=\"block h-full w-full\" href=\"https:\/\/www.businesstimes.com.sg\/companies-markets\/capital-markets-currencies\/south-korea-market-crashes-are-luring-traders-hooked-leveraged-etfs?ref=article-see-also\" data-discover=\"true\" rel=\"nofollow noopener\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"relative z-10 h-full w-full object-cover\" src=\"https:\/\/www.europesays.com\/korea\/wp-content\/uploads\/2026\/07\/e74cc6dc5019d4e551ac9c2ca1ad2811a6bde52a31e8099843220dd57fff681b.webp\" alt=\" A large amount of South Korean retail overseas ETF holdings are in leveraged or inverse funds. \" width=\"2000\" height=\"1333\"\/><\/a><\/p>\n<p class=\"whitespace-pre-wrap break-words mb-4 md:mb-6 inline-block\" data-testid=\"article-paragraph-component\">Volatility has increased for SK Hynix following the <a class=\"text-verticals-btblue underline hover:text-blue-500\" data-testid=\"article-annotation-link-component\" href=\"https:\/\/www.businesstimes.com.sg\/companies-markets\/telcos-media-tech\/sk-hynix-raises-us26-5-billion-us-offering-after-pricing-adrs-us149\" target=\"_blank\" rel=\"nofollow noopener\">debut of its American depositary receipts<\/a>, with the chipmaker\u2019s Seoul and US listings influencing each others\u2019 moves.\u00a0BLOOMBERG<\/p>\n","protected":false},"excerpt":{"rendered":"Measures to address such funds and ensure market stability are being discussed, the nation\u2019s top financial regulator said&hellip;\n","protected":false},"author":2,"featured_media":87853,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[820,31,18757],"class_list":["post-87852","post","type-post","status-publish","format-standard","has-post-thumbnail","category-korea","tag-etf","tag-korea","tag-south-korea-stocks"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/87852","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/comments?post=87852"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/87852\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media\/87853"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media?parent=87852"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/categories?post=87852"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/tags?post=87852"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}