Kim Yong-beom, chief of the Presidential Office's Policy Planning Office, said on the 10th that the need to supplement leverage exchange-traded funds (ETFs) "will likely be decided at the market situation review meeting."
At a Presidential Office briefing that day, Kim said, "There is a market situation review meeting (F4) involving the Ministry of Economy and Finance, the Bank of Korea, and the Financial Supervisory Service." He added, "Since the introduction and operation of leverage ETFs has been in place for about a month and a half, the F4 will closely examine whether this newly introduced system is affecting the market." He continued, "If necessary, and if it is determined that the system needs to be supplemented as a newly introduced measure, I think the F4 market situation review meeting will make a decision."
Concerns have recently grown in securities circles that a semiconductor-centered concentration of supply and demand, combined with single-stock leverage products, is further amplifying market volatility. According to the Korea Exchange, trading value for Samsung Electronics and SK hynix on the 8th was tallied at 9.5563 trillion won and 15.256 trillion won, respectively. Combined trading value for the two stocks totaled 24.8123 trillion won, accounting for 51.0% of the total trading value across the KOSPI and KOSDAQ (48.609 trillion won). This is a surge of 21 percentage points from 30.0% on May 26, just before single-stock leverage and inverse ETFs were listed.
Meanwhile, Kim said that day that President Lee Jae-myung will preside over a public grand debate on the 23rd covering property policy as a whole, including supply, finance, and taxation. Ahead of that, the Ministry of Land, Infrastructure and Transport on the 14th, the Financial Services Commission on the 15th, and the Ministry of Economy and Finance on the 16th will each hold separate debates, opening public discussions on supply, finance, and taxation in line with each ministry's characteristics.
Kim said, "At the debate, we plan to discuss the various opinions presented so far and seek policy directions." He added, "Through channels such as online feedback windows, we will broadly listen to the opinions of citizens who cannot attend the debate."
