"Daily Heaven and Hell" Rollercoaster: Will It End? Kim Yong-bum Speaks Out

Kim Yong-bum, Chief of Policy for the Presidential Office, has stated his position on the regulatory measures for single-stock leverage products, which have been pointed out as the cause of recent extreme volatility in the domestic stock market.

Appearing on a radio broadcast today, Chief Kim mentioned that the measure to raise the basic deposit for single-stock leverage ETFs from 10 million won to 30 million won in cash, scheduled for the 31st, will be implemented ahead of schedule, stating, "We expect the market stabilization effect to be substantial after the institutional reinforcement."

He added that after monitoring the implementation progress, additional supplementary measures would be reviewed if necessary.

Regarding the recent criticism that stock market volatility has amplified due to single-stock leverage products for Samsung Electronics and SK Hynix, he said, "It is difficult to view it as solely due to leverage products," while acknowledging, "It is true that leverage products have had some impact."

At the same time, he explained, "The volatility of semiconductor stocks themselves is large, and there is an aspect where the timing of the increased volatility overlapped with the product launch," adding, "That is why the volatility is appearing more prominently."

Mentioning President Lee Jae-myung's "San Francisco AI Declaration," Chief Kim projected that if the trend of solid artificial intelligence demand spreads, the market will resume its upward trajectory.

In response to concerns that raising the deposit to 30 million won might not prevent so-called "big hand investors" and individual investors from participating, Chief Kim replied, "There are various other supplementary measures," adding, "If additional measures are needed, such as raising the deposit amount much further, we will have to implement them at that time."

Reported by Lee Hyeon-yeong | Video by Seo Byeong-wook | Graphics by Yang Hye-min | Produced by SBS Digital News
※ Please note: This article was translated by AI and may contain errors.