(2nd LD) Chief regulator expresses regret over leveraged ETF-led volatility

South Korea’s top financial regulator expressed regret on Wednesday regarding recent market volatility attributed to leveraged exchange-traded funds (ETFs). The statement follows a period of instability in the financial markets that officials have linked to the trading patterns of these specific investment products.

The regulator's comments highlight growing concerns over the impact of high-leverage financial instruments on broader market stability. By addressing the issue publicly, the agency signaled a need for closer monitoring of how these ETFs influence price fluctuations and investor risk. The remarks underscore an ongoing effort by authorities to maintain orderly market conditions amid concerns that leveraged trading may be exacerbating volatility.