South Korea's KOSPI index plunged 5% on Monday (August 3), closing at 6241 points, while the KOSDAQ index's decline triggered a circuit breaker. In response to continuous severe market volatility, South Korean financial regulators are accelerating deleveraging efforts, proposing to amend the Capital Markets Act to grant regulators "emergency action authority." This would allow them to directly reduce the leverage multiple of single-stock leveraged ETFs from the current 2x to a minimum of 1x during periods of market instability, without requiring a separate product modification process. This measure aims to control new leverage and digest existing leverage to suppress market volatility.