South Korean lawmakers warn that the KOSPI index has "become a casino" and call for the delisting of leveraged ETFs.

Odaily Planet Daily reports that South Korean lawmakers are increasingly concerned about the risks of leveraged ETFs tracking single stocks, with one opposition lawmaker calling for the delisting of such products. On Monday, Ahn Cheol-soo, a conservative People Power Party lawmaker and former presidential candidate, posted on social media calling for strong corrective measures, including delisting, for leveraged ETFs tracking Samsung Electronics and SK Hynix. He wrote that the Korea Composite Stock Price Index (KOSPI) has "become a casino," and that such products are "a complete policy failure, eroding trillions of won in corporate value and national wealth every day." His remarks have heightened concerns among policymakers and investors about the risks of these ETFs. These products aim to achieve double the return on their underlying stocks, and their mechanized rebalancing process forces them to buy more when prices rise and sell more when prices fall, potentially amplifying market volatility. (Jinshi)