South Korean President: Stock Market Needs Time to Stabilize After Sharp Rise, Urges Regulators to Address Leveraged ETF Controversy

BlockBeats News, July 15th - South Korean President Lee Jae-myung stated that the South Korean stock market needs time to stabilize after a sharp increase in a short period of time. Lee Jae-myung said on Wednesday during a policy meeting in Seoul with senior government officials: "The domestic stock market in South Korea is currently quite unstable. Due to the unprecedented sharp rise in the market in such a short period of time, it will take time and a certain level of volatility to stabilize."

Lee Jae-myung acknowledged the recent controversy surrounding leveraged ETFs and urged the South Korean Financial Supervisory Service and the leaders of the South Korean exchanges to promptly address the issues and develop follow-up measures. Market observers expect regulatory authorities to intervene to curb the impact of such high-risk products on market stability, including possibly increasing the minimum margin requirements for investing in leveraged ETFs. South Korea's largest opposition party, the People Power Party, criticized the Lee Jae-myung government on Tuesday for promoting ambitious stock market goals while ignoring the growing leverage risk, thereby encouraging excessive risk-taking behavior.