Lee calls for swift complementary measures against single-stock leveraged ETFs

President Lee Jae Myung on Wednesday called for prompt complementary measures regarding recently introduced single-stock leveraged exchange-traded funds (ETFs), which have been blamed for heightened volatility in the stock market.

"Make sure to prepare complementary measures promptly and effectively," Lee said while receiving policy briefings from economy-related government ministries and agencies at the presidential office of Cheong Wa Dae.

His remarks came as single-stock leveraged ETFs, introduced in May and tracking the daily performance of two market heavyweights — Samsung Electronics and SK hynix — have been cited as key drivers of recent volatility in the domestic stock market.

As the two companies account for roughly half of the Korea Composite Stock Price Index's (KOSPI) total market capitalization, the products have been cited as one of the factors contributing to heightened volatility in the benchmark index.

Top policymakers, including Finance Minister Koo Yun-cheol, have voiced concerns over the side effects of the ETFs and pledged to draw up complementary measures to add ...