South Korean Government Officials: Single-Stock Leveraged ETF Size Has Exceeded 10 Trillion Korean Won, Difficult to Take Delisting Measures

According to South Korean media KBS, Kim Yong-beom, Chief of Policy at the South Korean Presidential Office, stated in an interview with KBS TV today that regarding the single-stock leveraged ETFs that have recently sparked controversy over stock market volatility, the government will study additional improvement measures, but in reality, it is difficult to take delisting measures. Currently, the scale of single-stock leveraged ETFs has exceeded 10 trillion won, and investors have already participated in trading. If forcibly delisted, it "will itself cause a huge shock to the market," therefore delisting is not realistic. These products were launched after sufficient discussion previously; besides meeting investment demand, there is also the policy purpose of attracting funds flowing to overseas markets back to the South Korean market, and it is not a policy mistake.