The FSC and presidential office said recent volatility reflected multiple factors, with single-stock leveraged ETFs amplifying swings but not defining South Korea's broader market outlook.
South Korea's Financial Services Commission rejected a Bloomberg Opinion column's claim that the country's stock market is becoming "uninvestable," saying there is "absolutely no concern" that South Korea will be viewed that way and arguing the column relied on unverified figures. The FSC disputed the column's cited 360,000 forced liquidations, saying forced liquidations averaged about 3,000 accounts a day in June and that the source, period and calculation behind the larger figure could not be confirmed. The regulator said volatility since mid-June reflected multiple factors rather than only single-stock leveraged exchange-traded funds, while the presidential office similarly said the products were one factor that amplified swings alongside global semiconductor-stock moves, concentration in Samsung Electronics and SK Hynix, and foreign investors' profit-taking and portfolio rebalancing. The FSC also pointed to stronger macroeconomic and earnings indicators, including second-quarter GDP growth of 3.7% year on year, a May current account surplus of $38.61 billion and rising 2026 earnings forecasts for KOSPI-listed companies, and said it will keep managing short-term swings while pursuing capital-market reforms.