South Korea Financial Services Commission responds to controversy: Single stock leverage ETF is not the main culprit of stock market volatility.

The Financial Services Commission of South Korea stated that single stock leveraged ETFs have played a significant role in preventing funds from flowing into overseas stock markets. The FSC also pointed out that the recent volatility of semiconductor stocks in the United States and Japan has also significantly increased, responding to the controversy surrounding the single stock leveraged ETF as the "culprit" behind the recent stock market volatility in South Korea. Byun Ji-ho, Director of the Capital Markets Bureau of the FSC, stated, "Some investment demand that originally flowed into overseas markets has returned to the domestic market, and indeed has prevented the further flow of new funds overseas." He also said, "I believe that the increased volatility in the South Korean stock market since the listing of the product cannot be solely explained by single stock leveraged ETFs. Against the backdrop of the high concentration of funds in Samsung Electronics and SK Hynix in the South Korean market, the fluctuation of semiconductor industry expectations and concerns globally has led to the expansion of related product volatility."