South Korea's four government departments will hold a meeting on Thursday to discuss the risks of single-stock leveraged ETFs.

According to a report by The Korea Times, South Korea’s financial regulators will hold a high-level meeting on Thursday to discuss risks and countermeasures for single-stock leveraged ETFs. The meeting is expected to take place under the framework of the "F4 Meeting" — the South Korean government’s macroeconomic and financial issue coordination mechanism — with officials from the Ministry of Economy and Finance, Financial Services Commission, Financial Supervisory Service, and the Bank of Korea in attendance. Recently, volatility in South Korea’s stock market has continued to intensify, drawing growing attention from regulators and market participants to single-stock leveraged ETFs. Stakeholders believe these products have become a key factor driving sharp stock price fluctuations. An official with knowledge of the matter said regulators have been coordinating relevant plans internally in recent days, but no final policy direction has been set yet. Possible measures under market discussion include raising margin requirements, limiting daily price fluctuation ranges, and adjusting leverage multiples. However, regulatory officials noted that these measures may only provide temporary relief and cannot fundamentally resolve the structural causes of market volatility. (Jinshi)