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Finanace

Financial authorities to meet Thursday on single-stock leveraged ETF risks

Financial authorities will convene a high-level meeting Thursday to discuss possible measures for single-stock leveraged exchange-traded funds (ETFs), as policymakers move to address mounting concerns that the products are amplifying swings in Korea’s stock market. The meeting, expected to be held under the government’s macroeconomic and financial issues consultative group known as the F4, will bring together officials from the Ministry of Finance and Economy, the Financial Services Commission, the Financial Supervisory Service and the Bank of Korea. The discussions come after weeks of increasingly volatile trading, with single-stock leveraged ETFs drawing growing scrutiny from regulators and market participants who say the products have become a significant driver of sharp price movements. The KOSPI plunged more than 8 percent during Monday’s session, triggering the market’s seventh circuit breaker of the year and intensifying calls for a policy response. Deputy Prime Minister and Finance Minister Koo Yun-cheol said last week during a National Assembly session that authorities were clos

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