Blue House Says Leveraged ETFs Will Be Closely Reviewed at F4 Meeting

[Financial News] Kim Yong-beom, policy chief at the Blue House, said at a briefing at the Chunchugwan Press Center on the 10th that concerns over the risks of leveraged exchange-traded funds (ETFs) tied to Samsung Electronics and SK hynix would be reviewed carefully by the F4 meeting. "It has only been about a month and a half since they began operating, so because this is a newly introduced system, the F4 will closely examine whether it is affecting the market," he said.
The F4 meeting is a consultative body where the deputy prime minister for economic affairs, the governor of the Bank of Korea, the chairperson of the Financial Services Commission, and the head of the Financial Supervisory Service gather to discuss major macroeconomic and financial issues.
Earlier, leveraged ETFs tracking only Samsung Electronics and SK hynix were launched on May 27. However, concerns are spreading that they deviate from the original purpose of broadening the domestic stock market base, while increasing share-price volatility, deepening the concentration in semiconductors, and raising risks for individual investors.



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