Deputy Prime Minister Koo Yoon-cheol says discussions are underway on stabilizing the exchange rate and improving single-stock leveraged ETFs
Deputy Prime Minister Koo Yoon-cheol 7told the National Assembly that the exchange rate would stabilize once external factors subside. In response to concerns that single-stock leveraged ETFs are increasing market volatility, he said the problems were recognized and that discussions were underway with relevant agencies on measures to improve them.
Deputy Prime Minister for Economic Affairs and Minister of Finance and Economy Koo Yoon-cheol 7attended a plenary meeting of the National Assembly’s Planning and Finance Committee and answered questions about the exchange rate and leveraged ETFs. Deputy Prime Minister Koo said, "Once external factors become calm, the exchange rate will stabilize, considering the economic fundamentals and soundness." At the same meeting, he explained, "We are in a situation where exports of 1,000billion dollars a month and trade surpluses of more than 300billion dollars are being recorded." Deputy Prime Minister Koo said that the sudden expansion of the stock market had created foreign investors’ rebalancing demand and that expectations of a US interest-rate hike were also increasing exchange-rate volatility.
Regarding single-stock leveraged exchange-traded funds (ETFs), he replied, "Because concerns have been raised, we are currently discussing ways to address and minimize those problems." Citing the criticism that the number of measures to stabilize the KOSPI market had increased since these products were launched, he said that he was monitoring them closely while keeping a close watch in consultation with relevant agencies. Deputy Prime Minister Koo explained the background to their introduction in South Korea by noting that leveraged ETFs operating overseas had been 2times and 3times leveraged.
In response to lawmaker Kim Tae-nyeon’s questions, issues were raised about protecting individual investors and the adequacy of online preliminary education (2hours). Deputy Prime Minister Koo explained that education and guidelines had been prepared. The meeting remarks were made in 2026year 7month 7day.