Ruling Party and Government to Consider Additional Measures on Samsung Electronics and SK hynix Leveraged ETFs if Needed

[Financial News] The Democratic Party of Korea (DPK) and the Lee Jae Myung administration said on the 20th that they would consider additional measures to address leveraged exchange-traded funds (ETFs) tied to a single stock, known as the 'Samsung Electronics and SK hynix leveraged ETF,' which has been cited as a cause of recent sharp stock price swings.
The DPK and the Financial Services Commission (FSC) made the announcement after wrapping up a party-government consultation at the National Assembly that day.
Rep. Park Sang-hyeok, the ruling party's secretary on the National Policy Committee, told reporters after the meeting that there had been a report on the measures announced on the 16th from the FSC, and that lawmakers had asked for stronger monitoring and a clearer assessment of market conditions overall. He added that they had also urged the FSC to prepare additional steps if necessary.
The financial authorities have already drawn up follow-up measures, including raising the deposit required to invest in leveraged ETFs tied to Samsung Electronics and SK hynix from 10 million won to 30 million won, as well as requiring trades in units of 20 shares or more.
Rep. Park also said, "We asked them to stay in close communication with the National Policy Committee when preparing additional measures," adding, "Since the implementation dates for the measures already prepared are all different, we will explain additional measures accordingly."
Separately, the party and the government also discussed major legislative items needed to carry out the Lee Jae Myung administration's policy agenda, including inclusive finance and mutual growth finance. The DPK added that, under the National Assembly Act, it would regularize the National Policy Committee's bill review subcommittee to meet twice a month in order to support the government's policy goals.

[email protected] Kim Hyeong-gu Reporter