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

Odaily Planet Daily News: Kim Yong-beom, head of the Policy Office at the South Korean Presidential Office, stated that in response to the recent significant 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 the market's higher volatility compared to other markets.

The scope of the investigation not only includes 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 issues, and that equivalent fluctuations in the global market are often amplified in the South Korean market.

He stated that leveraged ETFs may exacerbate market volatility, but they are not the sole cause. Regulators will also focus on examining factors such as the proportion of derivatives trading and the structure of investors. (KBS)