The Financial Commission convened an emergency meeting with leaders of major asset management firms to discuss measures regarding leverage exchange-traded funds (ETFs). This follows President Yoon Suk Yeol's directive to develop additional safeguards for single-stock leverage ETFs. The meeting comes just six days after the announcement of previous measures, indicating a swift response from financial authorities to enhance protections.
On July 22, the financial investment industry reported that the Financial Commission held discussions with ETF heads from major asset management firms, including Samsung Asset Management, Mirae Asset Management, and KB Asset Management, to address supplementary measures related to single-stock leverage ETFs.
This meeting is seen as a follow-up to President Yoon's public criticism of the effectiveness of existing measures during a Cabinet meeting the previous day. On July 21, he remarked, "There are concerns about whether the current measures will suffice," and urged, "Act decisively and swiftly to implement necessary responses." He also pointed out that the measures are not immediately effective but will take time to be enacted.
Earlier, on July 16, financial authorities announced a temporary halt on new product launches for single-stock leverage ETFs and increased the minimum deposit requirement from 10 million won to 30 million won. Additional measures included expanding minimum trading quantities, enhancing pre-education, and restricting advertising. However, both industry insiders and lawmakers have raised concerns that these investor protection measures may not be sufficient, particularly regarding the increase in the minimum deposit, which is set to take effect in August, leading to debates about its effectiveness.
As the Financial Commission discusses response strategies with major asset management firms, there is keen interest in whether further supplementary measures will be introduced. However, financial authorities have stated that while various options are under consideration, no specific plans have been finalized.
* This article has been translated by AI.
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