Ruling party, government to draw up additional measures in line with government’s corrective steps on Samsung Electronics-SK hynix ETF

[Financial News] The Lee Jae Myung administration and the Democratic Party of Korea (DPK) said on the 20th that they will seek additional measures in step with the government’s corrective actions on the Samsung Electronics and SK hynix leveraged ETF, which has been cited as a factor behind rising stock market volatility. As the People Power Party is also set to hold a forum on the issue on the 21st, both parties are expected to work together not only through ruling party-government consultations but also through the National Policy Committee.
Park Sang-hyuk, the ruling party secretary on the National Policy Committee, said after wrapping up a party-government meeting with the FSC and the Financial Supervisory Service at the National Assembly Members' Office Building that there had been a report on the corrective measures announced by the government on the 16th. He added that lawmakers asked for stronger monitoring of market conditions and, if necessary, additional measures to be closely coordinated with the committee, and said, "We will seek additional measures in line with the implementation of the corrective steps."
Earlier, the financial authorities raised the margin deposit required to invest in the Samsung Electronics and SK hynix leveraged ETF from 10 million won to 30 million won, and increased the trading unit to 20 shares. After implementing those measures, they plan to review market conditions and, if needed, prepare further steps, including legislative action.
Observers say the emphasis on communication with the National Policy Committee when discussing additional measures reflects the fact that the authorities have already used up all the tools available to them. The current corrective measures, which block new listings and advertising while raising margin deposits and trading units, leave the authorities with few new options beyond tightening those rules further. In the end, if additional measures are pursued, they are likely to involve bold legislative action such as revisions to the Financial Investment Services and Capital Markets Act.

[email protected] Kim Yun-ho Reporter