[E-Daily Reporter Kwon Oh Seok ] SamsungElectronics(005930)·SK hynix(000660) Amid concerns that single-stock leveraged ETFs (exchange-traded funds) are amplifying market volatility, financial regulators met with asset management company CEOs to urge them to protect investors and eliminate false or exaggerated advertising.

Lee Chan-jin, Chairman of the Financial Supervisory Service (FSS), held a meeting on the 13th at the Korea Financial Investment Association (KFIA) in Yeouido, Seoul, with the KFIA chairman and the CEOs of 20 asset management firms to discuss the results of the 2026 review of asset management firms’ voting and shareholder rights exercise systems, as well as other pressing issues in the capital market.
In his opening remarks, Governor Lee noted, “In the first half of this year, our capital market has experienced unprecedented quantitative growth, such as rising indices, alongside the emergence of significant risk factors such as market concentration and heightened volatility.” He added, “Amid this trend, as ETFs have recently grown rapidly and established themselves as a leading indirect investment product, the role and responsibility of the asset management companies that manage them have become more important than ever.”
He continued, “Since investors primarily rely on asset management firms’ advertisements when selecting ETFs, false or exaggerated advertising by these firms is a very serious matter from the perspective of investor protection. It is particularly regrettable that such cases have occurred frequently at large asset management firms, which should serve as role models for the industry.” He also urged, “Furthermore, in the process of managing ETFs, please make every effort to manage tracking errors in collaboration with LP (liquidity provider) securities firms.”
After Director Lee pointed out the need for extraordinary self-regulatory efforts to address conduct that undermines market order—such as exaggerated advertising—the asset management industry also expressed concern over current market volatility and pledged to take proactive measures to protect investors.
Speaking on behalf of the industry, Hwang Seong-yeop, Chairman of the Korea Financial Investment Association, stated, “The recent phenomenon of funds concentrating on specific large-cap stocks and the rapid increase in retail investors’ investments in leveraged products are issues our industry must examine more closely.” He promised, “Under the principles of investor protection and market stability, we will respond responsibly to ensure that necessary regulatory improvements and the industry’s self-regulatory efforts are effectively implemented on the ground.”
Although the roundtable was originally organized to discuss measures to strengthen asset management firms’ exercise of shareholder rights, the recent increase in market volatility shifted the focus to whether countermeasures regarding single-stock leveraged ETFs would be discussed. However, Governor Lee refrained from making any direct comments on the matter.
An asset management industry official who attended the meeting explained, “There was some discussion along the lines of whether the industry should make efforts to ensure that single-stock leveraged ETFs can make a soft landing in the market.” Currently, financial authorities are carefully considering various measures to mitigate market volatility, including investor education, stricter margin requirements, and adjustments to leverage ratios.