Recently, the prices of leveraged products that track South Korea's key chip stocks have taken a nosedive, resulting in a significant impact on both the South Korean stock market and the broader financial landscape. Industry data reveals that the prices of over ten leveraged exchange-traded funds (ETFs)—which track Samsung Electronics and SK Hynix and were listed in late May—have nearly halved. According to reports, the high-level coordination mechanism involving the four major economic departments of the South Korean government will convene a meeting on Thursday. The purpose of this meeting is to delve into the influence of single-stock leveraged ETFs on the stock market and to formulate response strategies. This marks the inaugural discussion of this issue within this mechanism. Comprising the Ministry of Economy and Finance, the Financial Services Commission, the Bank of Korea, and the Financial Supervisory Service, this mechanism represents the highest echelon of economic coordination in South Korea.
