SEOUL – South Korea will hold an emergency meeting on July 29 evening to discuss the market situation after a stocks rout that has wiped billions of dollars off investors’ holdings. The meeting, hosted by Finance Minister Koo Yun-cheol, will involve all of the country’s top financial authorities, starting from 6pm local time, according to lawmaker Yoo Dong-soo.Top administration officials faced multiple rounds of questioning by lawmakers at the country’s Parliament on July 29. Lawmakers have linked the rout in part to South Korea’s rollout of leveraged single-stock products in May. At a hearing, Koo apologised, acknowledging that the authorities should have examined the products more carefully before their launch. Still, he maintained that leveraged exchange-traded funds were only one of several factors behind the recent market turmoil.“We’ve already put in place a package of measures, but if it’s needed we’ll introduce additional steps to help normalise the market,” Koo told lawmakers.The Kospi has plunged about 40 per cent from its June peak. The selloff deepened on July 29 after SK Hynix Inc. reported weaker-than-expected earnings, raising doubts over the artificial-intelligence investment boom and accelerated retail selling. The fall triggered a market-wide circuit breaker for a second straight day.Lawmakers argued that single-stock leveraged ETFs had amplified those swings, making South Korea’s equity market significantly more volatile than global peers because speculative trading had become concentrated in a handful of blue-chip stocks.The July 29 hearings broadened into an attack on the government’s handling of the policy. Opposition lawmakers questioned why the products were introduced at an unusual speed despite concerns from much of the asset-management industry, arguing officials prioritised efforts to boost stock prices over market stability.“The country has turned into a casino,” People Power Party lawmaker Lee Jongwook told Koo during the hearing. “These are products that should never have been allowed onto the market. I consider this a policy failure.”Pressed by opposition lawmakers on whether he would step down if the fallout from the policy worsens, Koo said it would be irresponsible to speculate about resigning, adding that his focus was on stabilising markets.The criticism came as regulators prepared further curbs on leveraged ETF trading. The Financial Services Commission said this week it would consider investment caps for individuals, mandatory investor education and additional trading restrictions if tighter requirements taking effect on July 31 fail to cool demand.South Korea’s top financial regulators also apologised on July 29 over growing controversy surrounding single-stock leveraged ETFs. BLOOMBERG