Woofun AI reports that the Bank of Korea has issued a warning regarding single-stock leveraged ETFs linked to Samsung Electronics and SK Hynix. The central bank stated that expanding these products could exacerbate market concentration, as the two firms account for over half of the Korean stock market's total capitalization and trading volume.

The Bank of Korea noted that such instruments might amplify one-way trading flows driven by corporate performance changes or market expectations.

Additionally, potential pullbacks could magnify retail investor losses, while ETF redemptions or rebalancing may further destabilize stock prices. The central bank plans to strengthen monitoring of these ETFs' impact on the financial system.