Woofun AI reports that South Korean National Power Party member Ahn Cheol-soo has demanded the delisting of single-stock leverage ETFs tracking Samsung Electronics and SK Hynix. He characterized the Korea Composite Stock Price Index (KOSPI) as having "degenerated into a casino," noting that inflows into these specific ETFs have reached 212 trillion Korean won. These two companies constitute approximately 60% of the KOSPI's total market value, a concentration that has amplified market volatility. Consequently, the South Korean stock market has triggered the "limousine mechanism" 31 times and activated circuit breakers 5 times this year, while the KOSPI panic index hit a record high of 90.8.

The regulatory scrutiny follows the late May launch of domestic single-stock 2x leveraged ETFs, which were intended to attract high-risk trading demand back to the local market.

However, daily rebalancing and liquidity issues caused severe price deviations. In early June, an SK Hynix-linked leverage ETF surged roughly 50% in a single day while the underlying stock fell nearly 8%, with the fund trading at an 86% premium to its net asset value before dropping 27% the next day. The Bank of Korea has warned that expanding these products increases market concentration and retail investor risk, prompting the National Assembly to review potential tightening measures or delisting.