Svmuu News: Concerns among South Korean lawmakers over the risks of single-stock leveraged ETFs are growing, with one opposition lawmaker calling for the delisting of such products. On Monday, Ahn Cheol-soo, a lawmaker from the conservative People Power Party and former presidential candidate, posted on social media calling for strong corrective measures—including delisting—against South Korean leveraged ETFs that track Samsung Electronics and SK Hynix.
He wrote that the Korea Composite Stock Price Index (KOSPI) “has become a casino,” and that such products are “a complete policy failure, eroding trillions of won in corporate value and national wealth every day.” His remarks have heightened concerns among policymakers and investors about the risks posed by these ETFs. Designed to deliver twice the return of the underlying stocks, these products’ automated rebalancing process forces them to buy more when prices rise and sell more when they fall, potentially amplifying market volatility. (Jin Shi)