Yonhap reports the Financial Services Commission (FSC) said single-stock
leveraged ETFs have materially limited fund outflows to foreign equity markets
and helped prevent new capital from leaving. The FSC noted US and Japanese
semiconductor names have also seen increased volatility. Byun Je-ho,
director-general of the FSC capital markets bureau, said some demand that would
have flowed overseas has returned domestically and that ETFs alone cannot
explain recent Korean market swings; concentrated exposure to Samsung
Electronics and SK Hynix and repeated shifts in global semiconductor sentiment
have driven volatility in related products.
