South Korean Finance Minister Apologizes for Unconsidered Launch of Single-Stock Leveraged ETFs

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On July 29, South Korea’s Finance Minister Ku Jin-sok apologized for the poorly considered launch of single-stock leveraged ETFs, as market volatility triggered two consecutive days of circuit breakers. The KOSPI index fell more than 6% in early trading, with fear and greed index levels indicating heightened panic. The government is reviewing market stabilization measures and considering regulatory adjustments. On Wednesday, the KOSPI dropped as much as 12% during the session, with SK Hynix falling 17% after earnings before narrowing its decline to 8%.

BlockBeats report: On Wednesday, July 29, local time, after South Korean stocks experienced two consecutive trading halts, Finance Minister Koo Hyun-jong apologized for the rollout of single-stock leveraged ETFs without adequate consideration, in response to a lawmaker’s call for an apology.


Following a more than 6% drop in the early-session KOSPI index, Ku Yoon-jek stated in parliament that the government is internally studying market stabilization measures and may further adjust regulations on single-stock leveraged ETFs to address market volatility.


South Korea's KOSPI index experienced a volatile day on Wednesday, plunging as much as 12% intraday before narrowing its losses to around 6%; heavyweight stock SK Hynix posted a record single-day drop of 17% following its earnings report, with its decline now easing to around 8%. (Jin10)

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