Svmuu News: South Korean President Lee Jae-myung stated that the South Korean stock market needs time to stabilize after a sharp rise in a short period. “The domestic stock market is currently quite volatile,” Lee Jae-myung said Wednesday during a policy meeting with senior government officials in Seoul. “Since the market has experienced an unprecedented surge in such a short period of time, it will take time and a certain degree of volatility before it stabilizes.”
Lee Jae-myung acknowledged the recent controversy surrounding leveraged ETFs and urged the heads of the Financial Supervisory Service and the Korea Exchange to swiftly address the issues and formulate follow-up measures. Market observers expect regulators to intervene to curb the impact of such high-risk products on market stability, including a possible increase in the minimum margin requirements for investing in leveraged ETFs. South Korea’s largest opposition party, the People Power Party, accused the Lee Jae-myung administration on Tuesday of setting ambitious stock market targets while ignoring mounting leverage risks, thereby encouraging excessive risk-taking. (Jin Shi)