Lee Jae-myung: South Korean Stock Market Needs Time to Stabilize After Sharp Rally, Urges Regulators to Address Leveraged ETF Controversy

Odaily News South Korean President Lee Jae-myung stated that after a sharp rally in a short period of time, the South Korean stock market needs time to stabilize. Speaking at a policy meeting with senior government officials in Seoul on Wednesday, Lee Jae-myung said, "The domestic stock market is currently quite unstable. Because the market has experienced an unprecedented sharp rise in such a short period of time, it needs time and a certain degree of volatility to stabilize."

Lee Jae-myung acknowledged the recent controversy surrounding leveraged ETFs and urged the heads of the Financial Supervisory Service and the Korea Exchange to quickly address related issues and formulate follow-up measures. Market participants expect regulators to step in to curb the impact of such high-risk products on market stability, which could include raising the minimum margin requirements for investing in leveraged ETFs. On Tuesday, the main opposition People Power Party accused the Lee Jae-myung government of encouraging excessive risk-taking by setting ambitious stock market targets while ignoring the growing leverage risks. (Jin10)