South Korean lawmaker Ahn Cheol soo called for strong regulatory measures such as delisting of single stock leveraged ETFs tracking Samsung and SK Hynix, stating that KOSPI has become a casino. At present, the amount of funds flowing into related ETFs has reached 212 trillion Korean won, and the two companies together account for about 60% of KOSPI's total market value. This year, the South Korean stock market triggered 31 border car mechanisms, activated circuit breakers 5 times, and the KOSPI panic index rose to 90.8 at one point. At the end of May, South Korea launched its first batch of single stock 2-fold leveraged ETFs, but there was a price deviation after the products were listed. In early June, a leveraged ETF tracking SK Hynix saw an 86% premium, followed by a sharp drop of about 27% the next day. The Bank of Korea has warned that the expansion of single stock leveraged ETFs will exacerbate market volatility and amplify the risk of retail losses, and the South Korean National Assembly has initiated relevant reviews.
