A South Korean lawmaker warns that the KOSPI Index has “become a casino” and calls for the delisting of leveraged ETFs.

Golden Ten Data reported on July 6 that concerns are mounting among South Korean lawmakers over the risks associated with single-stock leveraged ETFs, with an opposition lawmaker calling for the delisting of such products. On Monday, Ahn Cheol-soo, a Member of Parliament from the conservative People Power Party and former presidential candidate, posted on social media calling for strong corrective measures, including delisting, for South Korean leveraged ETFs that track Samsung Electronics and SK Hynix. He wrote that the Korea Composite Stock Price Index (KOSPI) “has become a casino,” and described such products as a “complete policy failure that erodes trillions of won in corporate value and national wealth every day.” His statements have heightened the concerns of policymakers and investors about the risks of these ETFs. These products are designed to deliver twice the return of the underlying stocks, and their mechanical rebalancing process requires buying more as prices rise and selling more as prices fall—potentially amplifying market volatility.