South Korea's FSC Disputes Single-Stock Leveraged ETFs as Cause of Market Volatility

According to Yonhapnews, South Korea's Financial Supervisory Commission (FSC) disputed claims that single-stock leveraged ETFs are responsible for increased market volatility, stating instead that semiconductor sector concentration and global industry sentiment shifts are the primary drivers.

Byun Je-ho, head of FSC's Capital Markets Division, noted that the products have helped redirect some overseas-bound investment flows back to the domestic market. He emphasized that volatility in Korean stocks cannot be attributed solely to leveraged ETFs, citing the market's heavy concentration in Samsung Electronics and SK Hynix alongside volatile global semiconductor outlooks.