Korea Proposes Comprehensive Capital Market Review Including Leveraged ETFs

Presidential Office cites high semiconductor concentration and derivative usage as volatility drivers, urging a full structural review of the capital market beyond just leveraged ETF restrictions.

Woofun AI reports that Kim Yong-bum, Head of the Presidential Office for Policy Planning, called for a comprehensive review of the Korean capital market structure. He noted that while AI demand remains robust, concerns over tech capital expenditure sustainability and Chinese semiconductor competition are impacting sentiment. Kim emphasized that leveraged ETFs are not the sole cause of market volatility, pointing instead to the high concentration of semiconductor stocks and derivatives. He suggested the Financial Services Commission of Korea examine the entire market framework, including leveraged ETFs, to address structural risks.