Per Woofun AI, Lee Chan-jin, Governor of the Republic of Korea's Financial Supervisory Service (FSS), disclosed that regulators are evaluating distinct stabilization protocols for single-stock leveraged ETFs. During a press conference on June 22, 2026, Lee highlighted intensifying negative externalities from these instruments, specifically those tracking Samsung Electronics and SK Hynix. He expressed concern that retail investors face significant difficulty realizing returns while operating institutions capture profits and dividends.

The regulatory scrutiny follows the May 27, 2026 listing of these ETFs, which saw market capitalization surge from 4.5 trillion won to 9.6 trillion won by June 12. FSS data indicates an average daily turnover rate of 122.5%, drastically outpacing the 30.2% rate of other leveraged products. This extreme volatility contributed to a 7% plunge in the KOSPI index, triggering a circuit breaker today.