The Financial Supervisory Service assessed that single-stock leverage ETFs have the effect of preventing foreign currency outflow to overseas stock markets. Citing the fact that individual semiconductor stocks in the US and Japan have greater price volatility, it refuted the argument that single-stock leverage is the main culprit behind the expansion of domestic stock market volatility. The Financial Supervisory Service stated that after the launch of single-stock leverage products, explaining the expansion of stock market volatility solely through single-stock leverage is insufficient. It analyzed that product volatility expanded due to repeated expectations and concerns about the global semiconductor industry outlook. Regarding calls for abolition from some political circles, it clarified that abolition is difficult because the requirements for abolition are not met.
