FSC chief says launch of single-stock leveraged ETFs reflected various views
The chief of Korea's financial regulator said Thursday the decision to launch single-stock leveraged exchange-traded funds (ETFs) reflected various views, denying allegations it followed instructions from the presidential office. Financial Services Commission (FSC) Chairman Lee Eog-weon made the remarks during a parliamentary audit at the National Assembly in response to an opposition lawmaker's…
On Thursday, the chief of Korea's financial regulator, Lee Eog-weon, explained the decision to launch single-stock leveraged ETFs, countering allegations that the move was directed by the presidential office. During a parliamentary audit at the National Assembly, Lee emphasized that the FSC had listened to a variety of opinions in making the decision.
In May, 16 single-stock leveraged ETFs were initially listed on the main bourse, causing significant market volatility. Consequently, Korea raised the minimum cash deposit needed to invest in these ETFs from 10 million won to 30 million won in late July to help mitigate the volatility. Despite calls to introduce single-stock leveraged ETFs, as they are permitted in other countries but not in Korea, Lee refuted a market estimate suggesting that individual investors had lost around 54 trillion won due to these ETFs, deeming the figure unreliable.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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