Kim Yong-beom, deputy minister for policy at Cheong Wa Dae, said on the 10th that supplements may be needed for leveraged exchange-traded funds (ETF), noting, "I think the Market Conditions Inspection Meeting (F4) will make a decision."
At a briefing at Cheong Wa Dae's Chunchugwan that day, the deputy minister said, "There is a Market Conditions Inspection Meeting with the Ministry of Economy and Finance, the Bank of Korea, and the Financial Supervisory Service (FSS)," adding, "It has been about a month and a half since (the introduction of leveraged ETFs) began operating, so F4 will closely examine market conditions and consider them."
The F4 meeting is a consultative body where Deputy Prime Minister and Minister Koo Yun-cheol of the Ministry of Economy and Finance, Bank of Korea Governor Shin Hyun-song, Financial Services Commission (FSC) Chairman Lee Eog-weon, and Financial Supervisory Service Governor Lee Chan-jin gather to discuss macroeconomic and financial market issues. The deputy minister said, "Because it is a newly introduced system, we plan to closely examine what impact it has on the market," adding, "If necessary, I think that meeting will discuss it and make a decision."
Recently, in the market, concerns have emerged that semiconductor supply-demand concentration and the introduction of "single-stock leveraged ETF" products have combined to sharply increase market volatility. As various side effects, including losses for individual investors, have surfaced and controversy has grown, calls for countermeasures, including delisting, are intensifying. However, because the transaction size and net worth are so large, it is not easy to meet the usual delisting requirements.