The Korean government has identified single-stock leveraged ETF trading as a major driver of market volatility and announced comprehensive management measures, including setting individual investment limits (e.g., within 20% of total investment) and establishing legal grounds for market stabilization measures. The plan also includes expanding the application of excessive bid burden tax and introducing simulated trading to curb excessive trading and encourage investors to make careful judgments. While authorities have pointed to a decline in investor sentiment and supply-demand instability during the recent stock price decline, they believe that the fundamentals of the Korean economy remain solid, supported by strong semiconductor exports.
