South Korean People Power Party lawmaker Kim Eun-hye is exploring the possibility of filing a state compensation lawsuit over investor losses tied to Samsung Electronics and SK Hynix single-stock leveraged ETFs. According to PANews, fellow party lawmaker Na Kyung-won also called for a full investigation into public losses and said state compensation should be considered, while urging an inquiry through a parliamentary investigation and a special prosecutor into the process by which the products were introduced.
The dispute centers on a May 27 decision by South Korea's Financial Services Commission to allow the launch of single-stock leveraged products tracking twice the daily moves of Samsung Electronics and SK Hynix. After the products were listed, funds flowed in rapidly, and mechanical rebalancing amplified stock price volatility. By June 25, 14 such products had net assets of 16.28 trillion won and daily trading volume of 14.48 trillion won.
South Korean Lawmakers Explore State Compensation Claim Over Single-Stock Leveraged ETF Losses
2026-07-28 07:14:12
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