Posted on : 2026-07-16 17:37 KST Modified on : 2026-07-16 17:37 KSTSingle-stock leveraged ETFs tracking chipmakers Samsung Electronics and SK Hynix have been criticized as drivers of volatility
President Lee Jae Myung of South Korea speaks at a policy review held at the Blue House on July 15, 2026. (pool photo)
Korean President Lee Jae Myung on Wednesday ordered authorities to promptly implement supplementary measures to mitigate risks posed by single-stock leveraged exchange-traded funds (ETFs) tied to Samsung Electronics and SK Hynix, which have been criticized for causing volatility in the domestic stock market. During a policy briefing at the Blue House, the president addressed Lee Chan-jin, the head of the Financial Supervisory Service, when saying, “It seems many people have been impacted heavily by Samsung Electronics and SK Hynix ETFs.” “As the market regulator, I am ready to assume full responsibility,” Lee Chan-jin replied. Single-stock leveraged ETFs provide up to twice the daily performance of underlying stocks. These ETFs were launched in May as part of an attempt to stabilize the won-dollar exchange rate by bringing back investors in leveraged stocks from the US and Hong Kong stock markets, but they have come under fire for exacerbating confusion in a volatile market due to their product structure, which requires investors to buy more when prices rise and sell when they fall. “I cannot help but wonder if I ought to have done whatever I could to prevent the launch of this product last month,” the FSS head said.Noting that the country’s stock market had become “quite unstable,” the Korean president asked whether, given that it had undergone an unprecedented surge within such a short period, it would require time and further changes before becoming stable. “Measures such as being included in the Morgan Stanley Capital International (MSCI) Developed Markets Index watchlist should help stabilize the market, so why is that proving to be difficult?” the president asked. “It seems primitive that real estate accounts for such a large share of our society’s asset allocation. Normalizing the capital market is a crucial national policy for us. Please make haste and pull out all the stops with the legislative process for acts designed to prevent stock price suppression,” requested the president. Acts designed to prevent stock price suppression refer to proposed amendments to the Inheritance Tax and Gift Tax Act and other related laws introduced to prevent major shareholders or the families of those who own certain listed companies from deliberately keeping stock prices low to minimize inheritance and gift taxes during the succession process. Meanwhile, the president called for debt forgiveness measures. “If someone is in debt but lacks the means to repay it, declaring bankruptcy, granting discharge, and allowing them to embark on a fresh start can be beneficial to society,” he said. By Seo Young-ji, staff reporter; Cho Hee-yeon, staff reporterPlease direct questions or comments to [english@hani.co.kr]Related stories· KOSPI falls 10% in 2 days as record Samsung earnings fuel fears of chip cycle peak· KOSPI’s rollercoaster ride highlights dependence on chip stocks광고Editorial・opinion[Editorial] Seoul mayor risks losing office, but he’s already lost voters’ trust[Column] Korea’s brave new world: Tanking employment and soaring home prices[Editorial] Korean Peninsula once again becomes the front line of a geopolitical rivalry[Editorial] Regulatory action needed after another preventable warehouse fire[Column] Seeking the Korean soldiers who showed mercy during Vietnam massacres[Reporter’s notebook] Trump’s White House windfall[Column] Will Lee’s NATO partnership end differently than Yoon’s support for Ukraine?[Editorial] For Korea’s disputes with the US, the only way out is through[Column] Trump’s war at home[Column] Another sign of an empire in decline
