Presidential Office Says Market Response More Urgent Than Blame Over Leveraged ETF Rollout
Summary
- The presidential office said that regarding the rollout of single-stock leveraged ETFs, it is now more important to closely monitor the market and prepare countermeasures.
- The presidential office said it recognizes that single-stock leveraged ETFs were one factor behind increased market volatility.
- A presidential office official said authorities are closely reviewing market conditions, examining the causes and possible countermeasures, and may consider follow-up management and additional measures if needed.
Forecast Trend Report by Period
South Korea’s presidential office said it is more important to closely monitor the market and prepare countermeasures than to assign responsibility to Kim Yong-beom, the chief presidential policy aide, over the rollout of single-stock leveraged exchange-traded funds.
Seong Gi-hong, senior presidential secretary for public communication, made the remarks in an interview on CBS Radio’s Park Sung-tae’s News Show on August 6 when asked about calls to hold Kim responsible. The presidential office recognizes that single-stock leveraged ETFs were one factor behind increased stock-market volatility, he said.
Seong added that the products amplified volatility alongside several other factors, including wider swings in global semiconductor shares, heavy concentration in chip heavyweights such as Samsung Electronics Co. and SK Hynix Inc., and foreign investors taking profits and rebalancing portfolios.
He said Kim and other presidential office officials are closely reviewing the overall situation. They are examining the causes of the market moves and how to craft countermeasures, while also considering additional follow-up steps if needed.
Choi Su-jin, Hankyung.com reporter naive@hankyung.com
Korea Economic Daily
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