The presidential office said the products added to volatility, but linked the recent swings to chip-stock concentration, global semiconductor moves and foreign investors' rebalancing.
South Korea’s presidential office said its priority is to monitor markets closely and prepare countermeasures rather than assign responsibility to policy chief Kim Yong-beom over the introduction of single-stock leveraged ETFs. Sung Ki-hong, senior secretary for public communication at the presidential office, said the products were one factor behind heightened stock-market volatility, but described the recent turbulence as the result of several overlapping drivers. Those included larger moves in global semiconductor shares, heavy concentration in major chip stocks such as Samsung Electronics and SK Hynix, and profit-taking and portfolio rebalancing by foreign investors. Sung said concentrated fund flows into leveraged ETFs worsened the swings. He added that Kim and other presidential office officials are reviewing the causes of the market moves and possible responses, with additional follow-up measures under consideration if needed.