What did the head of the Korea Financial Supervisory Service say? I really regret the introduction of leveraged ETFs and should have stopped them at the time

Comparing news, Lee Chan-jin (Lee Chan-jin), director of the Korea Financial Supervisory Service, said on the 22nd that he regrets introducing Samsung Electronics and SK Hynix single-stock leveraged ETFs, acknowledged policy failure, and revealed that investor safety measures are being prepared. Regarding South Korea's debt investment boom, Lee Chan-jin said he was wary of the statistical illusion that credit transaction financing balances declined as a share of the total market value in the total market value due to the increase in the total market value of the stock market, and the decline in experience. Lee Can-jin's full statement at the press conference is as follows:

Acknowledges the failure of the single-stock leveraged ETF policy and says he is very sorry

Lee Can-jin expressed clear regret over the Samsung Electronics/SK Hynix single-stock leveraged ETF introduced at the end of last year to deal with high exchange rates, and expressed strong concern about overheated investment. The system was introduced at the end of last year to cope with the continued high exchange rate of the won, with the goal of directing the investment demand of retail investors from overseas stocks back to the domestic stock market. Li Canzhen pointed out that the product's extremely high turnover rate is causing only securities companies' pockets to bulge up. I'm worried that this might turn into a situation where people who pump money in casinos make a lot of money. I'm personally very worried that real retail investors don't get actual benefits; only the profit part of the management and operation system. The product's turnover rate is close to 200% when it is high. Based on this, it is estimated that the transaction fee that securities companies can obtain can reach up to 10 trillion won. I'm personally reflecting on whether I should have stopped it by lying down at the time no matter what, and now I really regret it.

Warn leveraged ETFs only allow brokers to make money; investor protection measures are in preparation

Lee Chan-jin expressed strong concerns about the high turnover rate of leveraged ETFs and warned that the current overheating situation has not abated. Although the Financial Supervisory Service recently issued a relevant consumer alert, it has not cooled down. Most investors belong to the middle class and ordinary people. If the stock market fluctuates, it could have a huge impact on households, so additional safety measures are being considered. Regarding the direction of specific measures, Lee Can-jin said: Plans are being studied to mitigate external shocks in credit-related areas, and will discuss with the policy authorities how to handle various measures from financing guarantees to credit in stages.

Worried about the debt investment boom, be wary of statistical misconceptions

Regarding the overall stock market and loan investment situation in South Korea, Lee Chan-jin pointed out that market instability and concentration of transactions are intensifying. There has been a sharp rise in transaction turnover, etc., and market instability and volatility have increased dramatically. In particular, the concentration of transactions, mainly semiconductor stocks, is expanding. Although loan investment has also increased dramatically, as the total market value rises, the share of credit financing balances in the total market value has declined, and there is an ironic decline in physical perception. In order not to be overwhelmed by statistical illusions, we are watching closely, and in fact, taking it seriously.

South Korean retail investors say it's unbelievable that their SpaceX IPO subscription fell through

Lee Chan-jin expressed strong dissatisfaction with the recent failure of the SpaceX IPO subscription allocation for future assets and securities. Not a single share has been distributed, which I don't understand. The distribution process is simply unbelievable. From an investor's point of view, this is also a very inconvenient and unsatisfying situation. If you hadn't participated in the IPO, you could have bought the stock on the first day of listing, but wasn't that money covered up (the IPO)? Li Canzhen later stated that in order to protect investors and prevent recurrence, the inspection results of future assets and securities will be shared.