Bank of Korea Warns on Risks from Single-Stock Leveraged ETFs

The Bank of Korea has issued a warning regarding single-stock leveraged exchange-traded funds linked to major South Korean chipmakers Samsung Electronics and SK Hynix. According to a local report, the central bank cautioned that these instruments could exacerbate market concentration and lead to higher volatility.

Regulators are concerned that such leveraged products may encourage one-way trading flows, which could destabilize the underlying stocks. The warning comes as Korean authorities continue to monitor the impact of derivative products on the domestic equity market.