South Korea's Deputy PM Koo Addresses Leverage ETF Market Volatility Concerns on July 7

According to Yonhapnews, South Korea's Deputy Prime Minister and Finance Minister Koo Yun-cheol on July 7 addressed concerns about single-stock leverage exchange-traded funds (ETFs) expanding market volatility, stating that relevant authorities are monitoring the situation closely.

Koo told lawmakers that the leverage ETF product was introduced to prevent capital outflows to overseas high-multiplier leveraged funds and that investor education and guidelines were established. He added that authorities are currently discussing measures to supplement and stabilize the product given emerging concerns about its market impact.