PANews
PANews|8月 03, 2026 15:25
[Korean Single-Stock Leveraged ETF Regulation Questioned: No Stress Test Conducted for Samsung, SK Hynix Plunge Risks Before Approval for Listing] According to a report by Korean media outlet MT, the Financial Services Commission (FSC) of South Korea, while completing a risk review of the product structure before approving the launch of single-stock leveraged ETFs, did not conduct stress tests on specific ETF products nor simulate potential market impacts from significant declines in core weighted stocks like Samsung Electronics and SK Hynix. On the 3rd, the office of Park Sung-hoon, a lawmaker from South Korea's People Power Party, disclosed that the risk analysis materials submitted by the FSC primarily included internal product risk review documents, individual stock market trading data, and a prior research report on leveraged and inverse ETFs published by the Capital Market Research Institute. A relevant FSC official stated that the submitted materials covered all existing analysis content and confirmed: 'The Financial Services Commission did not conduct independent stress tests on single-stock leveraged ETFs, nor did it commission external institutions to perform stress tests for the product's listing.'
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