South Korean Presidential Office to Investigate Causes of High Stock Market Volatility, Scope Not Limited to Leveraged ETFs

Odaily Odaily reported that Kim Yong-beom, head of the policy office at the South Korean presidential office, stated that in response to the recent sharp fluctuations in the South Korean stock market, the Financial Services Commission and the Financial Supervisory Service have been requested to investigate the structural factors causing South Korea's market to be more volatile than other markets.

The investigation scope includes not only leveraged ETFs but will also cover the overall market structure. Kim Yong-beom pointed out that the South Korean stock market has its own structural problems, and that global market fluctuations of the same magnitude are often amplified in the South Korean market.

He stated that leveraged ETFs may exacerbate market volatility, but they are not the sole cause. Regulatory authorities will also closely examine factors such as the proportion of derivatives trading and investor structure. (KBS)