Single-stock leveraged ETFs reignite turf war between financial regulators
A long-running turf war between Korea’s top financial regulator and financial watchdog is flaring up again over responsibility for the introduction of single-stock leveraged exchange-traded funds (ETFs), amid steep retail investor losses and heightened market volatility, according to market watchers Thursday. The Financial Supervisory Service (FSS) labor union attributed the controversy to the…
A contentious dispute has resurfaced between Korea's leading financial regulator and watchdog, focusing on the responsibility for introducing single-stock leveraged exchange-traded funds (ETFs). The Financial Supervisory Service (FSS) union claims the disagreement stems from the agency's dependence on the Financial Services Commission (FSC), reigniting their ongoing battle over policy-making power and supervisory independence.
On May 27, leveraged and inverse ETFs tied to Samsung Electronics and SK hynix commenced trading on the Korean stock market. These products have drawn criticism for substantial investor losses and potential influence on market volatility. According to FSS data presented to the National Assembly, retail investors at 10 leading domestic brokerages suffered a combined loss of 6.31 trillion won ($4.8 billion) between the launch and August 14, with 2.32 trillion won constituting realized losses.
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.
