YONHAP reports the Bank of Korea told a lawmaker that single-stock leveraged
ETFs linked to Samsung Electronics and SK Hynix could raise market
concentration, amplify price swings and reinforce one-way flows, noting the two
firms account for over half of Korea's equity market cap and turnover. The
central bank warned these products can magnify inflows/outflows as corporate
performance or market expectations shift, enlarge retail losses on downturns,
and trigger ETF redemptions or portfolio rebalancing that further destabilise
underlying share prices. The Bank of Korea said it will step up monitoring of
single-stock leveraged ETFs’ impact on the stock market and the financial
system.
