South Korea's Central Bank Governor Apologizes for Insufficient Warning on Risks of Single-Stock Leveraged ETFs

According to media reports, South Korea's Central Bank Governor Shin Hyun-sung expressed regret on the 12th during a parliamentary oversight session at the National Assembly's Finance and Economy Committee, stating: 'We failed to issue adequate warnings regarding single-stock leveraged ETFs and apologize to the public for this.' He noted that as of late May, he had not fully grasped the volatility in South Korea's domestic stock market or fluctuations in the semiconductor sector. Additionally, acknowledging an error in his June Financial Stability Report, which had predicted that single-stock leveraged ETFs 'would help prevent domestic investment funds from flowing overseas and aid in expanding foreign capital inflows,' Shin admitted that this assessment was inappropriate given the circumstances at the time.