South Korea is at a critical juncture in upgrading its capital market, and the introduction of single-stock leveraged exchange-traded funds could help attract investors back from overseas, the head of the local financial investment industry said Thursday.
Korea Financial Investment Association Chairman Whang Song-youp said such products would broaden investment options and enhance market competitiveness.
“Because these products are not available in Korea, investors have turned to markets like Hong Kong and the US,” Whang said at a press conference in Yeouido, marking his 100th day in office. “We need to keep pace with global trends.”
Under a plan by the Financial Services Commission, single-stock leveraged ETFs tracking major stocks such as Samsung Electronics and SK hynix could launch as early as next month.
Whang said the move would expand investor choice and help revitalize the domestic market.
On plans to extend stock trading hours, he described the change as “inevitable,” though preparation remains uneven across the industry.
The Korea Exchange had planned to extend trading hours to 12 hours starting in June, but has delayed the rollout to September amid industry pushback.
“The additional time should help firms prepare,” Whang said, noting smaller brokerages may face greater challenges. He added that discussions between the exchange and market participants are ongoing.
silverstar@heraldcorp.com
