What did the head of South Korea's Financial Supervisory Service say? He deeply regretted introducing leveraged ETFs and said he should have stopped it from happening in the first place.

According to Mars Finance, on June 23, Lee Chan-jin, head of the Financial Supervisory Service of Korea, stated on June 22 that he regretted introducing the single-stock leveraged ETFs for Samsung Electronics and SK Hynix, acknowledging the policy's failure, and revealed that he was preparing investor safety measures. Regarding the debt-driven investment boom in South Korea, Lee Chan-jin warned against the statistical illusion that the proportion of margin financing to total market capitalization is decreasing due to the growth of the total market capitalization of the stock market, leading to a perceived decline. Lee Chan-jin's full statements at the press conference are as follows: Acknowledging the failure of the single-stock leveraged ETF policy, stating "deep regret." Lee Chan-jin expressed clear regret for the Samsung Electronics and SK Hynix single-stock leveraged ETFs introduced at the end of last year to cope with the high exchange rate, and expressed strong concern about overheated investment. This system was introduced at the end of last year to address the persistently high exchange rate of the Korean won, aiming to guide retail investment demand from "overseas stock investment" back to the domestic stock market. Lee Chan-jin pointed out, "The extremely high turnover rate of this product is resulting in only enriching securities firms. I worry that this could become a situation where those who take a cut in a casino make huge profits. I am personally very concerned that real retail investors are not receiving any actual benefits, only the management and operation system profits. The turnover rate of this product is close to 200% at its peak, and based on this, it can be estimated that the transaction fees that securities firms can obtain could reach up to 10 trillion won. I am personally reflecting on whether I should have stopped it at the time, and now I deeply regret it." He warned that leveraged ETFs "only make money for securities firms," and investor protection measures are being developed. Lee Chan-jin expressed strong concern about the high turnover rate of leveraged ETFs and warned that the current overheated situation has not eased. "Although the Financial Supervisory Service recently issued a consumer alert, it hasn't cooled things down. Most investors are middle-class or ordinary people, and stock market fluctuations could have a huge impact on their families. Therefore, we are considering additional safety measures." Regarding specific measures, Lee Chan-jin stated, "We are studying solutions to mitigate external shocks in credit-related areas and will discuss with policy authorities how to handle various measures from financing margins to credit in stages." Concerned about the debt-driven investment boom, he warned against statistical illusions. Regarding the overall stock market and debt-driven investment situation in South Korea, Lee Chan-jin pointed out that market instability and trading concentration are intensifying. "Trading turnover and other factors have risen sharply, and market instability and volatility have increased significantly. In particular, trading concentration, especially in semiconductor stocks, is expanding. Although debt-driven investment has also increased significantly, the proportion of credit financing to total market capitalization has decreased as total market capitalization has risen, creating an ironic situation of perceived decline. To avoid being overwhelmed by statistical illusions, we are closely monitoring the situation and are taking it very seriously." He expressed strong dissatisfaction with the recent unsuccessful allocation of SpaceX shares to Mirae Asset Securities. "I can't understand why not a single share was allocated. The allocation process is simply unbelievable. From an investor's perspective, this is also very inconvenient and frustrating. If you didn't participate in the IPO subscription, you could have bought shares on the first day of listing, but isn't that money tied up (by the IPO subscription)?" Lee Chan-jin later stated, "To protect investors and prevent this from happening again, we will share the results of our review of Future Asset Securities."