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2026-07-17 13:34:12
[Korea's Financial Services Commission: Single-Stock Leveraged ETFs Not the Main Cause of Stock Market Volatility, Effectively Intercepting Capital Outflows] ⑴ The Financial Services Commission (FSC) of Korea stated that single-stock leveraged ETFs have played a significant role in preventing capital outflows to overseas stock markets. Some investment demand that was originally flowing overseas has returned to the country, and new capital outflows have also been effectively curbed. ⑵ Regarding the controversy surrounding single-stock leveraged ETFs as the "culprit" of recent increased volatility in the Korean stock market, the FSC's Capital Markets Bureau responded that the increased stock market volatility since the product's launch cannot be explained solely by the product itself. Against the backdrop of highly concentrated funds in Samsung Electronics and SK Hynix in the Korean market, the fluctuating expectations and concerns about the global semiconductor industry have led to increased volatility in related products. ⑶ The FSC also pointed out that the recent significant increase in volatility in US and Japanese semiconductor stocks further corroborates that cyclical fluctuations in the global semiconductor industry are the dominant factor, rather than the structure of a single product.
