Why did Korea launch single-stock leveraged ETFs despite concerns about investor risk?

Lee Eog-weon said the Financial Services Commission had listened to various opinions, including calls to introduce the products because they were available overseas but not in Korea. He denied that the decision followed instructions from the presidential office.

What did South Korea do to reduce volatility in single-stock leveraged ETFs?

Korea raised the minimum cash deposit required to invest in single-stock leveraged ETFs to 30 million won from 10 million won in late July. The measure was intended to curb volatility after the products were linked to extreme market swings.

How did the FSC chairman respond to claims that investors lost 54 trillion won on leveraged ETFs?

Lee Eog-weon disputed the estimate of around 54 trillion won in individual investors’ losses, calling the figure inaccurate. He nevertheless apologized for the losses, concerns and harm caused by the policy, regardless of the need to introduce it.

FSC chief says launch of single-stock leveraged ETFs reflected various views

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Summary

Financial Services Commission Chairman Lee Eog-weon said Thursday that the decision to launch single-stock leveraged ETFs reflected various views, not instructions from the presidential office, during a parliamentary audit at the National Assembly. Sixteen such ETFs were listed on the main bourse in May, triggering extreme market volatility. Korea raised the minimum cash deposit for investing in them to 30 million won from 10 million won in late July. Lee disputed an estimate of 54 trillion won in individual investors’ losses and apologized for the resulting losses and concerns.

Key Facts

The 16 single-stock leveraged ETFs were listed on the main bourse in May.
The minimum cash deposit was raised to 30 million won from 10 million won in late July.
Lee Eog-weon said calls to introduce the products cited their availability overseas while they were not available in Korea.
Lee said a recent estimate placing individual investors’ losses at around 54 trillion won was not accurate.

By Yonhap

Published Oct 8, 2026 1:48 pm KST

Financial Services Commission (FSC) Chairman Lee Eog-weon speaks during a Cabinet meeting at Cheogn Wa Dae, Seoul, Thursday. Yonhap

The chief of Korea's financial regulator said Thursday the decision to launch single-stock leveraged exchange-traded funds (ETFs) reflected various views, denying allegations it followed instructions from the presidential office.

Financial Services Commission (FSC) Chairman Lee Eog-weon made the remarks during a parliamentary audit at the National Assembly in response to an opposition lawmaker's question about the reasons behind the launch.

"We have listened to various opinions," Lee said during the audit.

In May, 16 single-stock leveraged ETFs were listed on the main bourse, which led to extreme volatility on the market.

Korea later raised the minimum cash deposit required to invest in single-stock leveraged ETFs to 30 million won ($22,400) from 10 million won in late July to curb volatility.

"There had been calls (to introduce single-stock leveraged ETFs) as they are allowed overseas but not in Korea," Lee said.

The FSC chief, however, disputed a recent market estimate putting individual investors' losses from single-stock leveraged ETFs at around 54 trillion won, saying the figure was "not accurate."

"Regardless of the need to introduce the policy, I am sorry for the losses, concerns and harm it has caused."

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