AJU PRESS ASIA FIRST NEWS AGENCY

Journalist

&
""
Latest by
  • U.S. Considers Three Options for Disarming Hezbollah in Lebanon
    U.S. Considers Three Options for Disarming Hezbollah in Lebanon The United States and Israel, along with Lebanon, are reportedly exploring various options to disarm Hezbollah. These include utilizing the Lebanese army or blocking arms supplies through Syria. Israel is also not ruling out the possibility of expanding military operations. However, significant challenges are anticipated for any of these approaches.According to the Wall Street Journal on July 20, the most concrete plan currently under discussion involves leveraging the Lebanese army.The proposal suggests that as the Israeli military gradually withdraws from southern Lebanon, the Lebanese army would take control of the area. Following this, U.S. special forces would assist in recovering Hezbollah's weapons, with the potential for the use of force being considered depending on the situation.Initial steps have already begun. Last week, the U.S., Israel, and Lebanon held direct talks in Rome to discuss the process of transferring occupied areas to the Lebanese army. According to the U.S. State Department, preliminary work for the Lebanese army to regain control of the southern region also started this week.However, it remains uncertain whether this will lead to actual disarmament. Reports indicate that there are pro-Hezbollah factions within the Lebanese army. Many soldiers reportedly feel uneasy about using force against their own citizens. The Lebanese government has also avoided direct military confrontation with Hezbollah due to concerns about a resurgence of civil war.Hezbollah has strongly opposed any disarmament attempts. Its member, Hassan Fadlallah, warned that if forces supported by the U.S. attempt to recover weapons, they will fight back as they would against the Israeli military.Another option being considered involves utilizing Syria to block arms and supplies entering Hezbollah.Iran has long supplied military resources to Hezbollah through Syria. The U.S. believes that if the Syrian government strengthens border controls with Lebanon, it could help cut off key supply routes. President Donald Trump has repeatedly stated that the Ahmed al-Shara government could play a role in this process.However, sending Syrian troops to fight Hezbollah is viewed as unrealistic. There remains significant resentment in Lebanon over the Syrian military presence that lasted from 1976 to 2005. The new Syrian government is also focused on stabilizing its domestic situation and restructuring its military, leaving it with little capacity for military operations in Lebanon.The final option is for the Israeli military to continue its offensive operations. If the strategies involving the Lebanese army or Syria do not yield results, Israel may escalate its military actions.Israel is assessed to have significantly weakened Hezbollah's leadership and missile capabilities through two years of attacks. However, there are concerns that military force alone will not be sufficient to completely dismantle the organization, which has been deeply rooted in Lebanon's Shia community for over 40 years.* This article has been translated by AI. 2026-07-21 14:40:00
  • South Korea sees no immediate oil supply disruptions
    South Korea sees 'no immediate oil supply disruptions' SEOUL, July 21 (AJP) - South Korea has enough crude oil supplies to last through September and expects no immediate disruption even if shipping through the Red Sea is halted, the government said on Tuesday, as lingering tensions in the Middle East put another major energy shipping route at risk. The Ministry of Trade, Industry and Resources said refiners had secured crude for July and August equivalent to more than 110 percent of last year's average import volume. Bookings for September have continued to rise and already exceed 90 percent of the volume imported during the same period last year. "We have confirmed that there should be no major problem with crude oil supplies through September," said Yang Ki-wook, a senior official at the ministry. "Even if the Red Sea is blocked, we do not expect any particular difficulty." The assurances came after Yemen's Iran-aligned Houthi movement declared a maritime blockade against Saudi Arabia the previous day, raising fears that ships carrying Saudi exports could face attacks or restrictions near the Bab el-Mandeb Strait, the narrow gateway linking the Red Sea with the Gulf of Aden and the Indian Ocean. The Houthis said the blockade took effect immediately in retaliation for what they described as Saudi Arabia's siege of Yemen. Saudi Arabia condemned the announcement and began taking measures to protect commercial vessels using its shipping routes. The threat is particularly significant because the Red Sea has served as an alternative outlet for Saudi crude while passage through the Strait of Hormuz remains vulnerable to the conflict involving the United States and Iran. Saudi Arabia can move crude through its East-West Pipeline from fields near the Persian Gulf to the Red Sea port of Yanbu, allowing exports to bypass Hormuz. Ships bound for Asian markets, however, must then pass through the Bab el-Mandeb Strait at the southern end of the Red Sea. A disruption there could sharply reduce the value of the Saudi bypass route and force tankers onto much longer voyages. Oil flows through Bab el-Mandeb averaged about 5.4 million barrels per day in the first quarter of 2026. By comparison, roughly 20 million barrels of oil and petroleum products passed through the Strait of Hormuz each day in 2024, equivalent to about one-fifth of global consumption. The ministry said vessels were continuing to operate normally in the Red Sea and that officials were monitoring conditions in real time. "If the Red Sea is blocked, the situation would become more difficult," Yang said. "But because that has not materialized, we are not taking any immediate action. Should problems arise, we would have to devise alternative means, including routes involving the Suez Canal." The latest escalation comes after a brief period of easing tensions following a June 17 memorandum of understanding (MOU) between Washington and Tehran aimed at ending their hostilities. The situation deteriorated again in July after Iran announced renewed restrictions around Hormuz and the United States resumed military action against Iranian targets. Of six South Korea-bound tankers that passed through Hormuz after the June agreement, three have already reached the country, while the remaining three are expected to arrive this week, the ministry said. South Korea remains highly exposed to disruptions in Middle Eastern energy supplies because it produces virtually no crude oil domestically and operates one of Asia’s largest refining and petrochemical industries. Middle Eastern suppliers accounted for about 69.9 percent of the country's crude imports in 2025, despite efforts to expand purchases from the United States and other regions. The government began allowing domestic refiners to borrow crude from national reserves in March under the country's first strategic oil swap program. Refiners receiving reserve oil are required to return the same amount after their delayed overseas shipments arrive. The measure was introduced after the Hormuz crisis disrupted tanker movements and increased the risk of temporary shortages at individual refineries. Korea National Oil Corp. held about 100 million barrels of government crude and petroleum reserves at the end of 2025, excluding stocks stored under joint arrangements with foreign producers. Its nine storage facilities have a combined capacity of about 146 million barrels. Officials said there was no immediate reason to resume the swap program because refiners had secured more than their normal crude requirements for July and August. The government could nevertheless reactivate the measure if the Middle East conflict drags on or shipping conditions deteriorate further. South Korea has also sought to strengthen direct supply arrangements with oil-producing countries. Earlier this month, the government and the United Arab Emirates' state-owned Abu Dhabi National Oil Co. agreed to expand cooperation on long-term crude supply, emergency coordination and oil storage in South Korea. The agreement followed a UAE pledge in March to provide up to 24 million barrels of crude. The government said it would continue tracking tanker movements, refinery inventories and international oil prices while considering additional cargoes from outside the Middle East. The widening risks around both Hormuz and Bab el-Mandeb have highlighted the limits of relying on a single alternative route, even as officials maintain that South Korea has enough contracted supplies and emergency reserves to withstand a short-term disruption. 2026-07-21 14:38:30
  • Kim Jun-hyung: Justice Innovation Party to Join Vote on Filibuster for Special Investigation Bill
    Kim Jun-hyung: Justice Innovation Party to Join Vote on Filibuster for Special Investigation Bill The Justice Innovation Party announced it will participate in the vote to end the filibuster on the second extension of the Special Investigation Law on July 21.Kim Jun-hyung, acting leader of the Justice Innovation Party and floor leader, spoke to reporters after meeting with Han Byeong-do, acting leader of the Democratic Party, at the National Assembly. He stated, "I received in-depth opinions from Acting Leader Han regarding the progress of the Democratic Party's criminal procedure law bill."Kim added, "Considering the circumstances of the Democratic Party, I cannot disclose the details shared by Acting Leader Han at this time. However, I trust the information provided and will proceed steadfastly to achieve prosecutorial reform."Following this, senior spokesperson Park Byeong-eon remarked, "While we view the Democratic Party as a partner and will generally cooperate, if there are disagreements in the latter half of the National Assembly, it may be difficult to automatically support the filibuster. I hope such situations do not arise."He also noted, "The direction pursued by the Democratic Party and the Justice Innovation Party is not significantly different. If contentious issues arise, I will strongly request the party's stance on those matters."* This article has been translated by AI. 2026-07-21 14:36:00
  • Rising Water Levels at Imjin Rivers Pilsung Bridge Prompt Government Alert
    Rising Water Levels at Imjin River's Pilsung Bridge Prompt Government Alert The water level at Pilsung Bridge, located at the northernmost point of the Imjin River in Yeoncheon, is continuing to rise, moving beyond the 'attention' stage of crisis response.According to the Ministry of Interior and Safety, as of 12:37 p.m. on July 21, the water level at Pilsung Bridge exceeded 8.95 meters, prompting officials to ensure thorough management of the situation. Yoon Ho-jung, head of the Central Disaster and Safety Countermeasure Headquarters and Minister of Interior and Safety, stated, "Please manage the situation and ensure the safety of residents with all possible scenarios in mind," and directed relevant agencies to share information and activate a close cooperation system.The rapid increase in the water level at Pilsung Bridge is largely attributed to heavy rainfall and the release of water from North Korea's Hwanggang Dam.According to a report by Yonhap News, the Ministry of Climate, Energy, and Environment determined, based on satellite imagery analysis from the previous afternoon, that North Korea had released water from the Hwanggang Dam, located upstream on the Imjin River.While there was an agreement between the North and South to provide prior notification before releasing water from the dam, this time, North Korea did not give any advance notice. A source from the Ministry of Unification was quoted by Yonhap News, stating, "Given that joint responses to natural disasters are humanitarian issues, responsible cooperation between the North and South is necessary." The Imjin River basin has specific response levels based on the water level at Pilsung Bridge: a rise of over 1 meter triggers 'evacuation of river visitors,' 2 meters prompts 'evacuation of non-flood period residents,' 7.5 meters indicates an 'attention' stage for border area crisis response, and 12 meters signals a 'warning' stage.Meanwhile, the Korea Meteorological Administration announced that the heavy rain warning issued for Yeoncheon, Gyeonggi Province, would be lifted as of 12:30 p.m. on July 21.* This article has been translated by AI. 2026-07-21 14:32:00
  • The Importance of Governance Reform Over Limiting Financial Holding Chair Terms
    The Importance of Governance Reform Over Limiting Financial Holding Chair Terms Financial authorities are pursuing measures to limit the terms of financial holding company chairs to prevent them from establishing long-term power bases by forming boards of directors that favor their interests. Plans are also being considered to strengthen the reappointment process and enhance the independence of outside directors. While it is appropriate to check the excessive concentration of power in the hands of the chair, creating a governance structure that allows for proper selection and oversight of the chair is more important than simply cutting the term to a few years.In South Korea, the chair of a financial holding company effectively controls personnel decisions, budgets, and business strategies of its subsidiaries. They wield significant influence over the appointments of bank, credit card, insurance, and securities company leaders. Despite being at the helm of financial groups managing assets worth tens to hundreds of trillions of won, there are no substantial shareholders to effectively oversee them. When the board of directors is dominated by the chair in a structure with dispersed ownership, it can easily lead to unchecked power.Critics have long pointed out that in some financial holding companies, the chair's nomination committee operates more like a body that endorses the current chair's reappointment. The chair influences the selection of outside directors who are close to them, and this board then decides on the chair's reappointment. Potential competitors are often sidelined or excluded from the candidate pool. As the chair's term comes to an end, there have been claims that they focus more on managing outside directors and securing reappointment than on management innovation.In such a structure, management practices that inflate short-term performance are inevitable, prioritizing profits from household loans and real estate finance, which are then used to justify large bonuses. When financial accidents or failures in internal controls occur, the blame often falls on subsidiary representatives or staff. If profits are attributed to the chair while accidents are blamed on employees, it cannot be considered responsible management. The discussion around limiting the long-term reappointment of financial holding chairs is a consequence of the industry's own making.However, simply preventing three consecutive terms will not resolve the issues. Even with term limits, if a chair pre-selects a successor to maintain influence or rotates positions among close associates, little will change. Reducing a nine-year term to six years does not guarantee an independent board. There is also a risk that government or financial authorities may exert more influence each time a chair changes. If the government effectively appoints the CEO of a private financial company, it would signify a regression to 'state-controlled finance,' which would be a significant setback for reform.The key lies in the transparency of the selection process. Criteria for forming the chair candidate pool, evaluation metrics, and verification procedures should be disclosed to shareholders. The independence of the nomination committee must be ensured to prevent the current chair from interfering in succession planning. Outside directors should be selected based on their expertise in finance and risk management, rather than personal connections with the chair. Mechanisms must also be established to ensure that the opinions of institutional investors and minority shareholders are genuinely reflected.Reappointment evaluations should be stricter than those for new appointments. They should not only consider net profit and stock prices but also assess financial accidents, consumer protection, internal controls, soundness management, and long-term corporate value. In the event of a major incident, previously awarded bonuses should be reclaimed, and outside directors should be held accountable if the board fails to fulfill its supervisory responsibilities. Simply limiting terms while maintaining a structure where power is concentrated without accountability will only create another form of chair power.Financial holding companies operate based on the public's deposits and are protected by public safety nets in times of crisis. This necessitates a high level of public accountability and responsibility. Financial authorities must not stop at the noticeable regulation of prohibiting three consecutive terms. Regardless of who becomes the chair, there must be a structure in place that prevents unilateral power, allows for oversight by the board and shareholders, and ensures accountability in the event of incidents. The success of financial holding reform hinges not on how many terms a chair serves but on how transparently chair power is controlled. 2026-07-21 14:32:00
  • Samchundang Pharmaceutical Shares Plunge Over 40% Amid Manipulation Allegations
    Samchundang Pharmaceutical Shares Plunge Over 40% Amid Manipulation Allegations Shares of Samchundang Pharmaceutical, a leading company on the KOSDAQ, plummeted by over 40% during trading, reigniting attention on past allegations of stock manipulation made by an investor to the Financial Supervisory Service and the National Assembly.On July 21, a post titled 'Samchundang Pharmaceutical, -41% in 3 Hours' gained traction on an online community. The author, identified as A, noted, "The price dropped from 1.28 million won on March 30 to 160,000 won today. If I had invested 100 million won at the end of March, I would only be able to withdraw 13 million won now."The accompanying chart showed the stock price, which had traded at 284,500 won early in the session, collapsing to 167,500 won. In just a few hours, the stock fell by more than 40%, leading to a surge in sell-offs and significantly increased trading volume.Additionally, a blog post from March 30 titled 'Request for Investigation into Samchundang Pharmaceutical's Stock Manipulation' has resurfaced. The author, identified as B, listed various past business dealings, including contracts for a non-invasive blood glucose monitor, COVID-19 vaccine, oral insulin development, obesity treatment, S-PASS technology, and eye drop contracts, claiming, "Exaggerated disclosures and media play have been repeated."B specifically pointed out that the contracts related to obesity treatments in Japan and Europe were mostly undisclosed, and the estimated contract sizes were based on projected future sales, which raised concerns. He also mentioned plans for major shareholders to sell their stakes and announcements of new drug developments, labeling it a "typical manipulation stock pattern."B emphasized, "Problems will emerge when this year's performance and oral insulin results are released." Although the post did not attract much attention at the time, it has gained traction again following the recent stock decline.In response, netizens commented, "The stock hit the lower limit the day after the blog post was published and has been falling ever since," and "Biotech is scarier than leverage itself." Others noted, "It seems like they were preparing for manipulation, but other biotech issues compounded the situation," and "I had bookmarked it, and now it has come to this." Some remarked, "It hit the upper limit yesterday, and now it's down 40%. The volatility is worse than cryptocurrency," while another quipped, "It's not Samchundang; it's Samhell." 2026-07-21 14:32:00
  • Ruling Party Urges Opposition to Stop False Propaganda Over Presidents Property Sale
    Ruling Party Urges Opposition to Stop 'False Propaganda' Over President's Property Sale The Democratic Party criticized the People Power Party on July 21 for its attacks regarding President Lee Jae-myung's recent sale of an apartment in Bundang, Seongnam, where a mortgage of 1.77 billion won was established before the property was sold for 2.9 billion won. The party accused the opposition of spreading 'absurd speculation and false propaganda' and called for an immediate halt to the dissemination of 'fake news' aimed at tarnishing the president's reputation.Spokesperson Park Hae-cheol stated during a briefing at the National Assembly, 'The president completed the sale of his residence for 2.9 billion won, which is below the market price. This reflects a strong commitment to implementing policies for real estate normalization.' Previously, President Lee sold the apartment he had owned for 28 years, becoming a non-homeowner. The transfer of the apartment's title occurred on July 16, and it is reported that a mortgage of 1.77 billion won was established in the name of the president and his spouse.On the previous day, the Blue House explained, 'The sale was made at a price lower than the market value of 2.9 billion won. Although there is no obligation to sell as a single homeowner, this action demonstrates the president's commitment to real estate normalization.' Regarding the mortgage of 1.77 billion won, they noted, 'The details of the registration are due to the buyer's circumstances.'In response, the People Power Party criticized the establishment of the mortgage, which listed the buyers as debtors, calling it a 'loophole' and demanding an explanation of the transaction process. Floor leader Jeong Jeom-sik remarked at a party meeting, 'I couldn't help but be impressed by this method of evading loan regulations. The ruling party should change its name from the Democratic Party to 'Democratic Mortgage.'Party leader Jang Dong-hyuk also expressed his views on Facebook, stating, 'As the public struggles with real estate loan regulations, the president has personally proposed a solution: seller loans, 'Democratic Mortgage.' He criticized the government for previously claiming that easing loan restrictions would lead to speculation, while now creating both the regulations and the loopholes.'As the opposition's attacks continued, Spokesperson Park emphasized, 'Had the president retained ownership of the property, he could have fully enjoyed the benefits of the membership rights and potential value increase without any restrictions. Considering that reconstruction is about to be actively pursued, the sale of the president's residence is not a transaction that realized a market profit but rather a decision to voluntarily forfeit membership rights.'He added, 'Despite this, the People Power Party is framing the consideration given to the buyer's circumstances during the sale as a form of circumvention. The decision to transfer ownership before receiving the final payment was made to accommodate the buyer's acquisition of membership status and financial situation, which the seller took on the risk of recovery.'Furthermore, he stated, 'This is not a 'loophole' as claimed by the People Power Party, and it is entirely different from 'usury.' It is a notion that could only arise from the People Power Party, which has engaged in various real estate loopholes and speculation by exploiting legal gaps. Their actions appear to be driven by a malicious intent to undermine the president's commitment to stabilizing the housing market through fake news and propaganda.'He concluded by urging the People Power Party to immediately cease the dissemination of fake news aimed at damaging reputations and called for a genuine commitment to legislative discussions in the National Assembly to stabilize the real estate market. 2026-07-21 14:28:00
  • People Power Party Proposes Election Reforms Following Ballot Shortage
    People Power Party Proposes Election Reforms Following Ballot Shortage 국민의힘은 6·3 지방선거 투표용지 부족 사태와 관련해 사전투표제 폐지와 선거관리위원회 독립 감찰기구 설치 등 선관위 구조 개혁을 위한 법안을 추진하기로 했다. 국민의힘은 21일 국회에서 '제9회 전국동시지방선거 투표용지 부족사태 등 국민참정권 침해 진상규명 및 선거관리 개혁을 위한 국정조사특별위원회'와 '6·3 국민참정권 침해 진상규명 및 선거관리 개혁 특별위원회' 연석회의를 열고 선거제도와 선관위 개혁 방안을 논의했다. 장동혁 대표는 "광장에 모인 시민들의 바람은 소중한 내 한 표를 돌려달라는 것"이라며 "그러기 위해 야당이 주도하는 국민 특검을 관철시키고, 책임자를 처벌하고, 선관위와 선거제도를 개혁해달라는 것"이라고 주장했다.이어 "이제 광장에 모인 시민의 함성과 뜻을 담아 국회가 국민께 답을 해야 될 때가 됐다"며 "국조특위에서 더 치밀하고 강력하게 추진해서 특검으로 가는 길을 열어달라"고 당부했다.정점식 원내대표는 "국민들은 왜 투표용지가 부족했는지, 누가 책임져야 하는지, 왜 지금까지 아무도 책임 안 졌는지 묻고 있다"며 "하지만 선관위는 독립된 헌법기관이라는 이름 뒤에 숨어서 사건을 축소하고 책임을 회피하기에 급급하다"고 지적했다.아울러 "국정조사에 이어서 특검 수사를 통해 한 점 남김 없이 의혹의 진상을 밝혀내야 한다"며 "국정조사와 특검이 밝혀낸 진상규명 결과에 따라 선관위 해체 수준의 개혁이 반드시 이뤄져야 한다"고 강조했다.국민의힘 선거관리 개혁특위 위원장인 박대출 의원은 연석회의 종료 후 기자들과 만나 "개혁특위에서 당론으로 추진하기로 한 사전투표제 폐지는 오늘 회의에서 이견 없이 공감대를 형성했다"며 "선관위 구조개혁, 투·개표 시스템 투명화 등을 위한 최소 8개 법안 플러스 알파가 필요하다"고 밝혔다. 그러면서 △선관위와 분리된 독립 감찰기구 설치 △선관위 내부 공익신고자 보호 규정 법률 명시 △각급 선관위 통폐합 △투표용지 100% 인쇄 의무화 등을 제시했다. * This article has been translated by AI. 2026-07-21 14:24:00
  • K League Trip Day Combines Soccer and Local Tourism
    K League Trip Day Combines Soccer and Local Tourism Traveling to support their teams is transforming into a rich local experience. Fans are moving beyond simply attending matches to enjoy local cuisine and attractions as part of a comprehensive tourism package.The Korea Tourism Organization, Korail Tourism Development, and the Korea Professional Football League announced on July 21 that the '2026 K League Trip Day,' a sports-focused tourism initiative linking professional soccer viewing with local tourism, will officially launch on July 25.◆ Expansion of Sports Tourism Following Successful Pilot ProgramThis initiative was developed in response to positive feedback from a pilot program conducted in May. During that event, over 150 fans from FC Seoul and Incheon United traveled on a special train to Daejeon, visiting local attractions and bakeries, demonstrating the potential for sports-related tourism.Starting in the second half of the year, the program will significantly expand beyond the Seoul metropolitan area to include K League home bases nationwide. It will offer two types of packages: a 'full package' for traveling fans and a 'semi-package' for local home fans, with a maximum of 100 participants per match.The full package for traveling fans departing from areas like the Seoul metropolitan region includes round-trip train tickets on KTX or SRT, transportation connections, match tickets in the away section, free tours of local attractions, and the accompaniment of professional guides. Events for fan participation will also be held on the train, turning travel time into an enjoyable experience.◆ Rich Local Experiences Expected to Boost Regional EconomiesThe inaugural event on July 25 will feature a match between Busan IPark and Suwon Samsung Bluewings, with an itinerary that includes a visit to Daejeon and then to Busan's Geoduk Stadium. Activities will include visits to traditional markets, match attendance, free tours of Haeundae, and rides on beach trains.Subsequent programs will showcase unique experiences tied to specific teams, such as visits to the Gyeongsangbuk-do Arboretum for the Pohang Steelers match and a bunker experience in Jeonju for the Jeonbuk Hyundai match. The offerings will range from day trips to two-day stay packages, aiming to draw soccer fans into local economies.Kang Yu-young, head of the regional tourism development team at the Korea Tourism Organization, stated, “While the number of visitors coming to local areas for sports events is increasing, there has been a lack of related travel products. We will continue to expand support to convert fans' travel demand into stay-type tourism.”Lee Woo-hyun, acting CEO of Korail Tourism Development, emphasized, “We have created a new tourism platform that combines rail travel with the K League, fostering interaction among fans. We aim to revitalize stay-type tourism and invigorate local economies through collaboration with regional soccer teams and businesses.”* This article has been translated by AI. 2026-07-21 14:24:00
  • Financial Authorities Strengthen ETF Discrepancy Rate to 2%, Industry Pushback
    Financial Authorities Strengthen ETF Discrepancy Rate to 2%, Industry Pushback Following the announcement of supplementary measures for single-stock leverage on July 16, the financial authorities are facing criticism from the securities industry regarding the increased responsibility for managing exchange-traded funds (ETFs).According to the financial investment industry on July 21, the core of the improvement plan is the heightened obligation to manage discrepancy rates. In the ETF market, liquidity providers (LPs) from securities firms are responsible for reducing the gap between market prices and net asset values by providing buy and sell quotes. The new measures will tighten the LPs' obligation to manage end-of-day discrepancy rates from the previous 3% to 2%.Industry experts argue that this change may actually lead to more violations of discrepancy rates. The widening of discrepancy rates is influenced by various factors, including liquidity of underlying assets, trading volume, market volatility, order imbalances, and hedging conditions. Therefore, they contend that applying a uniform 2% standard across all products has its limitations.The rebalancing structure of leveraged ETFs also complicates discrepancy rate management. Single-stock leveraged ETFs, along with all leveraged ETFs, require rebalancing to align exposure to underlying assets with target ratios based on end-of-day prices. This is particularly contentious for single-stock leveraged ETFs, where trading demand is concentrated on specific stocks like Samsung Electronics or SK Hynix, leading to greater market volatility.Conversely, products with low liquidity pose additional challenges. Small-cap and thematic ETFs may experience temporary widening of discrepancy rates even when quotes are submitted normally, especially during market shocks. Unforeseen variables, such as geopolitical risks or surges in commodity prices, can lead to concentrated investment demand in specific themes, increasing the likelihood of price distortions. Additionally, with over 1,150 listed products, there are concerns that the sheer number of items to manage has not been adequately considered.The simultaneous quoting period is also a key issue. From 3:20 PM to 3:30 PM, just before the regular market closes, simultaneous quoting occurs to determine end-of-day prices. During this time, LPs are exempt from submitting ETF quotes, and the characteristics of large-scale trades from asset managers and individual investors tend to concentrate, leading to increased market volatility. For instance, on June 8, a large buy order during this period caused the discrepancy rate for the 'ACE SK Hynix Single-Stock Leverage' product to soar to 90.18%.There are structural concerns that the current liquidity provision system is unable to keep pace with the rapid expansion of the ETF market and increasing market volatility. In times of heightened market volatility, existing LP personnel may struggle to adjust prices quickly enough to match market movements, which can lead to wider discrepancy rates.Industry representatives agree that fundamental institutional improvements should take precedence over merely tightening discrepancy rate standards. They advocate for reforms in trading systems to disperse orders concentrated at the end of the day and structural improvements in the simultaneous quoting operation and single-price trading times to better absorb and supply market liquidity.Additionally, the method of calculating the indicative net asset value (iNAV) is identified as an area needing enhancement. Discrepancy rates are defined as the difference between net asset values and market prices. Therefore, the current method of calculating net asset values based on end-of-day prices may not accurately reflect the true value of ETFs during periods of high market volatility or when the pricing of underlying assets is not smooth. There is also a suggestion to consider calculating both upper and lower ranges of appropriate values during trading hours.An industry insider noted, "While strengthening discrepancy rate management may reduce the average discrepancy rate across all ETFs, the actual impact is likely to be minimal. There is also a possibility that this could lead to the departure of LPs feeling burdened by the new requirements."* This article has been translated by AI. 2026-07-21 14:24:00