South Korea’s finance minister has pledged new steps to reduce stock market volatility, responding to a cooling trend in retail investment for single-stock leveraged exchange-traded funds (ETFs).
The announcement comes as authorities seek to stabilize trading conditions after a period of intense speculative activity in the local equity market.
The move follows a series of regulatory interventions by the Financial Services Commission (FSS), which recently unveiled a package of measures designed to dampen the surge in single-stock ETFs.
These funds have come to dominate local trading volumes, raising concerns among policymakers about market stability and speculative excesses.
The finance minister’s comments suggest that the government is preparing additional tools to manage volatility, even as the initial wave of retail enthusiasm for leveraged products appears to be subsiding.
The focus on single-stock leveraged ETFs reflects broader efforts to address structural risks in South Korea’s equity markets.