Koo Yoon-chul: "Discussing Supplementary Measures for Leveraged ETFs"

Deputy Prime Minister and Minister of Strategy and Finance Kyu Yon-chul is reporting to the Fiscal Economy and Planning Committee held at the National Assembly on the 7th. 2026.7.7 Photo by Hyunmin Kim

The government has begun preparing supplementary measures for leveraged exchange-traded funds (ETFs) based on single underlying stocks such as Samsung Electronics and SK hynix.

At the plenary session of the Fiscal and Economic Planning Committee at the National Assembly on July 7, 2026, Deputy Prime Minister and Minister of Strategy and Finance Koo Yoon-chul stated, in response to concerns that single-stock leveraged products have increased market volatility, "We are currently discussing ways to address and minimize the issues."

Deputy Prime Minister Koo explained, "Before the system was introduced, leveraged ETFs with two or three times leverage were already being operated overseas. As a result, significant investment was flowing from Korea into those products, and part of the reason for introducing them domestically was to curb that trend. We considered both the foreign exchange and capital markets, but currently, some issues have also been raised."

He added, "We are well aware of the concerns that leveraged ETFs are contributing significantly to volatility in our stock market. Relevant agencies are closely monitoring the situation and observing various developments."

Deputy Prime Minister Koo also said, "We have required investors to receive education and established certain guidelines for leveraged product investments, but given the current concerns, we are discussing ways to stabilize those aspects."

This content was produced with the assistance of AI translation services.