Financial Officials Apologize Over Stock Market Collapse... 'Leverage Responsibility'

Debates over single-stock leveraged ETFs have intensified, prompting financial authorities to acknowledge responsibility for product introduction and post-launch responses. Deputy Minister of Economy and Finance Goo Yun-chul stated that while the initiative aimed to redirect risky investments and reduce market risks, unforeseen impacts required swift regulatory improvements. He mentioned raising the basic deposit amount to 3 million won and cash payments as initial measures. The Financial Commission acknowledged single-stock leveraged ETFs contributed to market volatility but emphasized broader factors like AI investment uncertainty and semiconductor industry dynamics. Officials pledged to enhance investor protections and review market impacts with industry experts.