The head of South Korea's sixth largest asset management company believes leveraged ETFs should be gradually phased out of the market.

```htmlGelonghui July 30｜Bae Jae Kyu, head of South Korea’s sixth largest asset management company, has urged investors to avoid trading leveraged and inverse ETFs, suggesting that these products should gradually exit the market. Bae, who serves as CEO of Korea Investment Management Company, posted on Thursday that during periods of high market volatility and fluctuating prices, leveraged products can quickly depreciate due to daily rebalancing and compounding effects. He noted that many investors believe prices will inevitably rebound after a sharp decline, but it is difficult to consistently seize such opportunities. He emphasized that this “is not a viable way to accumulate wealth over the long term,” and said the best approach is to stay away from these products. Before issuing this warning on Thursday, Bae had published a related post but deleted it after attracting unexpected attention. His company manages several single-stock leveraged products, including the KIM ACE Samsung Electronics single-stock leveraged fund and the KIM ACE SK Hynix single-stock leveraged fund. Bae stated that instead of direct delisting, a better approach is for asset management companies and liquidity providers to collaborate, assisted by moderate regulatory support, to gradually reduce the overall scale of these products.```