South Korea Rules Out Delisting Single-Stock Leveraged ETFs on July 19

According to remarks on KBS Sunday Diagnosis on July 19, Kim Yong-beom, South Korea's chief policy officer, ruled out delisting single-stock leveraged exchange-traded funds tracking Samsung Electronics and SK Hynix. Kim stated that delisting would itself create significant market disruption and is "difficult to imagine."

Kim indicated the government will explore additional remedial measures to minimize price deviation (the gap between an ETF's market price and its net asset value) and reduce market impact during specific periods. Potential approaches under discussion include widening the management review cycle beyond 30-minute intervals and using derivative instruments instead of selling underlying assets for tracking adjustments.