South Korean Finance Minister Koo Yun-cheol apologized to the public for the hasty launch of single-stock leveraged ETFs. This followed a sharp correction in the South Korean stock market, which caused tens of thousands of retail investors who had jumped on the chip stock bandwagon to suffer massive losses.

Lee Eog-weon, chairman of the Financial Services Commission of South Korea, stated that regulators are considering restricting access to such products to professional investors only and are exploring ways to lower the leverage ratio. Since their launch on May 27, South Korean retail investors have made net purchases of approximately $9.7 billion in single-stock leveraged ETFs. However, as the KOSPI index—which is heavily weighted toward chip stocks—has plummeted nearly 35% over the past month, leveraged ETFs linked to Samsung Electronics and SK Hynix have plummeted by 75% to over 80%.