FSC Chairman Lee defends single-stock leveraged ETF launch amid loss concerns

At a parliamentary audit in Sejong, Financial Services Commission Chairman Lee Eog-weon explained that the introduction of single-stock leveraged exchange-traded funds was driven by multiple stakeholder inputs, not by any directive from the presidential office. He referenced the listing of 16 such ETFs earlier in the year, which sparked heightened volatility on the main bourse. In response, regulators increased the required cash deposit for investors from 10 million to 30 million won in late July. Lee dismissed a recent estimate that individual investors had lost about 54 trillion won, labeling it inaccurate, and apologized for the losses, concerns and damage the products have caused.