A majority of South Koreans view the introduction of single-stock leveraged ETFs as a wrong decision, according to a recent public opinion poll [1].
The results highlight growing public frustration over rapid stock-price fluctuations, which have been linked to the introduction of these high-risk financial instruments [1].
Realmeter conducted the survey for The Today, polling 504 respondents aged 18 and older across the country [1]. The data shows that 63.7% of participants believe the decision to introduce the ETFs was wrong [1]. Within that group, 41.2% described the decision as very wrong, while 22.5% said it was mostly wrong [1].
In contrast, only 19% of those surveyed said the decision was good [1]. Another 17.4% responded that they did not know [1].
The poll also measured public sentiment regarding the response from financial regulators. A majority of respondents, 59.2%, said the regulator’s supplementary measures are insufficient [1].
Participants suggested several additional measures to curb volatility. The most popular suggestion was limiting the daily transaction count, which was supported by 24.1% of respondents [1]. Other suggestions included raising the base deposit, supported by 22.2% [1], and strengthening the minimum trade unit, which 21.5% of participants favored [1].
The survey was conducted on June 22, 2024, with the results reported on June 24, 2024 [1].
“63.7% view the introduction of single-stock leveraged ETFs as a wrong decision”
The strong public opposition reflects a tension between the desire for diverse investment products and the need for market stability. By identifying single-stock leveraged ETFs as a driver of price volatility, the public is signaling a preference for stricter regulatory guardrails over high-risk trading opportunities, potentially pressuring South Korean regulators to implement more restrictive trading limits.
