[E-Daily Reporter Kwon Oh Seok ] Lee Eun-won, Chairman of the Financial Services Commission, announced on the 16th that he would soon formulate and announce supplementary measures regarding single-stock leveraged ETFs (exchange-traded funds), which have been identified as a major cause of the sharp volatility in the domestic stock market.

Appearing on the show “Kim Eo-jun’s ‘Humility Is Hard’ News Factory” that day, Chairman Lee was asked whether single-stock leveraged products had influenced the recent stock market volatility. He replied, “I think the issue is to what extent that is the case,” adding, “We are closely reviewing and deliberating on the matter to swiftly devise supplementary measures, which we plan to announce soon.”
Regarding measures to temporarily suspend trading, he said, “Since we’re dealing with the market, such a move could cause greater side effects, so we’re examining the situation comprehensively.” When asked if measures including this were currently being prepared, he remained tight-lipped but noted, “We are consulting closely with relevant ministries.”
Chairman Lee explained that the volatility in the stock market was due to “increased volatility in the global semiconductor industry, rapid growth driven by a ‘super cycle,’ and a sharp rise in stock prices over a short period.” He added, “Related expectations and concerns fluctuate daily, and stock prices fluctuate every time news breaks,” pointing out that volatility is present not only in Korean semiconductor stocks but also in overseas ones.
In response to the observation that Korean semiconductor stocks are fluctuating more sharply than their overseas counterparts, he elaborated that this is due to the rapid increase in market capitalization of SamsungElectronics(005930)and SK hynix(000660), which has led to their growing weight in the KOSPI index.
Chairman Lee reiterated that single-stock leveraged products are short-term, high-risk instruments. He emphasized that to mitigate market volatility, it is necessary to encourage the inflow of long-term capital and diversified investment, implement industrial policies to foster trusted companies, and create an environment conducive to long-term investment by protecting shareholder value.