The Financial Services Commission of Korea said that single-stock leveraged ETFs played an obvious role in blocking capital flows to overseas stock markets. At the same time, the FSC pointed out that the volatility of US and Japanese semiconductor stocks has also increased markedly recently, and responded to the controversy that the single stock leveraged ETF is the “culprit” of the recent increase in Korean stock market fluctuations. Bian Jihao, director of the FSC Capital Markets Bureau, said, “Some of the investment demand that originally went to overseas markets has returned to the domestic market, and it has indeed played a role in preventing new capital from continuing to flow overseas.” He also said, “I think the increased volatility in the Korean stock market since the product was launched cannot simply be explained by a single-stock leveraged ETF. In a context where capital in the Korean market is highly concentrated in Samsung Electronics and SK Hynix, expectations and concerns about the global semiconductor industry are constantly repeated, leading to increased volatility in related products.”

The Financial Services Commission of Korea said that single-stock leveraged ETFs played an obvious role in blocking capital flows to overseas stock markets. At the same time, the FSC pointed out that the volatility of US and Japanese semiconductor stocks has also increased markedly recently, and responded to the controversy that the single stock leveraged ETF is the “culprit” of the recent increase in Korean stock market fluctuations. Bian Jihao, director of the FSC Capital Markets Bureau, said, “Some of the investment demand that originally went to overseas markets has returned to the domestic market, and it has indeed played a role in preventing new capital from continuing to flow overseas.” He also said, “I think the increased volatility in the Korean stock market since the product was launched cannot simply be explained by a single-stock leveraged ETF. In a context where capital in the Korean market is highly concentrated in Samsung Electronics and SK Hynix, expectations and concerns about the global semiconductor industry are constantly repeated, leading to increased volatility in related products.”