Korea Financial Investment Association (KOFIA) Chairman Whang Song-youp, right, speaks during an emergency meeting on single-stock leveraged exchange-traded funds at the association’s headquarters in Seoul, Tuesday. Courtesy of KOFIA
Korea is preparing measures to curb speculation in single-stock leveraged exchange-traded funds (ETFs) after daily turnover topped 18 trillion won ($12.14 billion) and some products lost more than half their value this month, industry officials said Thursday.
Potential measures are expected to be announced soon by the country's top economic policymakers, collectively known as the F4. The group comprises the Ministry of Finance and Economy, the Financial Services Commission, the Financial Supervisory Service and the Bank of Korea.
The regulatory push gathered pace after President Lee Jae Myung raised the issue at a policy briefing Wednesday and urged financial regulators to "quickly put together well-crafted follow-up measures."
The securities industry has also begun developing its own safeguards. The Korea Financial Investment Association (KOFIA) and 10 major brokerages held an emergency meeting Tuesday and agreed to draw up self-regulatory measures for the products.
