South Korea’s financial authorities are reviewing additional steps after concluding market volatility increased following the launch of single-stock leveraged exchange-traded funds (ETFs) tied to Samsung Electronics and SK Hynix.

Lee Eok-won (이억원), chairman of the Financial Services Commission, said on Tuesday at a briefing to the National Assembly’s Political Affairs Committee in Seoul that market volatility had increased after the launch of single-stock leveraged products, prompting authorities to announce supplementary measures on July 16. He said authorities would push the measures swiftly to stabilise markets and would also review additional steps while watching market conditions.

Financial authorities have previously announced supplementary measures to strengthen investor protection and improve market stability for single-stock leveraged ETFs. They plan to decide whether additional regulation is needed after checking the effects of existing measures and reviewing trading trends.

Lee Chan-jin (이찬진), head of the Financial Supervisory Service, also said single-stock leveraged ETFs could increase investor losses and market volatility.

Lee said concerns had been raised about investor losses and increased market volatility after the government introduced leveraged ETFs.

He said authorities would closely monitor the effects of key supplementary steps and trading trends, and would discuss with relevant agencies the need for additional measures.