Four South Korean government agencies will meet on Thursday to discuss Single Stock Leveraged ETF risk.

BlockBeats News, July 14th, according to The Korea Times, South Korea's financial regulatory authority will hold a high-level meeting on Thursday to discuss the risks of single-stock leveraged ETFs and corresponding measures. This meeting is expected to take place within the framework of South Korea's government's macroeconomic and financial coordination mechanism known as the "F4 Meeting," with representatives from the Ministry of Economy and Finance, the Financial Services Commission, the Financial Supervisory Service, and the Bank of Korea in attendance. In recent days, the South Korean stock market has experienced intensified volatility, drawing increasing attention to single-stock leveraged ETFs from both regulators and market participants. Various parties believe that such products have become a key driver of sharp stock price fluctuations.

Insiders stated that regulatory authorities have been internally coordinating potential solutions in recent days but have not yet finalized a policy direction. Possible measures being discussed in the market include increasing margin requirements, limiting daily price fluctuation ranges, and adjusting leverage ratios. However, regulatory officials believe that the aforementioned measures may only provide temporary relief and are unlikely to fundamentally address the structural reasons behind the market's volatility. (FXStreet)