Four South Korean departments will meet on Thursday to discuss the risks of single stock leveraged ETFs

According to the Korea Times, South Korea's financial regulatory authorities will hold a high-level meeting on Thursday to discuss the risks and countermeasures of single-stock leveraged ETFs. This meeting is expected to take place under the framework of the South Korean government's macroeconomic and financial issue coordination mechanism, the "F4 Meeting," with officials from the Ministry of Economy and Finance, the Financial Services Commission, the Financial Supervisory Service, and the Bank of Korea in attendance.

Recently, fluctuations in the South Korean stock market have intensified, and single-stock leveraged ETFs are receiving increasing attention from regulators and market participants. Various parties believe that these products have become a significant factor driving extreme stock price volatility.

Informed officials stated that the regulatory authorities have been coordinating relevant plans internally in recent days, but the policy direction has not yet been finalized. Possible measures discussed in the market include raising margin requirements, limiting daily price fluctuations, and adjusting leverage ratios. However, regulatory officials believe that these measures may only provide temporary relief and are unlikely to fundamentally address the structural causes of market volatility.