Business · Markets · 1 hr ago
South Korea central bank chief apologizes over ETF warnings
South Korea’s central bank governor, Shin Hyun-song, apologized on October 12 for not giving enough warning about single-stock leveraged exchange-traded funds.
He spoke during a parliamentary audit at the Bank of Korea in Seoul.
Shin said the bank had not fully understood volatility in South Korea’s stock market, including in memory-chip stocks.
In a June financial stability report, the bank had said the funds could help keep South Korean investment money at home and attract money from overseas.
Shin later said that assessment was not appropriate given the circumstances at the time.
His remarks acknowledged that the bank had not adequately assessed the market conditions when discussing the funds.
South Korea’s central bank chief Shin Hyun-song apologized on October 12 for not sufficiently warning about single-stock leveraged exchange-traded funds.
He said he had not fully understood volatility in the domestic stock market and memory semiconductor sector at the time.
Shin made the remarks during a parliamentary audit at the Bank of Korea in Seoul.
He also said the Bank of Korea’s assessment that the funds could help prevent domestic investment from flowing overseas was not appropriate given the circumstances.
- Who
- Bank of Korea Governor Shin Hyun-song.
- What
- He apologized for not sufficiently warning about single-stock leveraged ETFs.
- When
- October 12, 2026.
- Where
- At the Bank of Korea in central Seoul, during a parliamentary audit.
- Why
- He said he had not fully understood volatility in the domestic stock market and memory semiconductor sector.
This story does not have two clearly opposing sides.
I did not sufficiently warn about single-stock leveraged ETFs. I am sorry to the public.
At the time, I had not fully understood volatility in the domestic stock market and the memory semiconductor sector.
Shin discussed the issue at a press conference following a Bank of Korea monetary policy meeting.
The Bank of Korea’s financial stability report said single-stock leveraged ETFs appeared likely to help prevent domestic investment from flowing overseas and attract more foreign funds.
Shin apologized during a parliamentary audit and said the earlier assessment was not appropriate given the circumstances.
- Apology date
- October 12, 2026
- Speaker
- Shin Hyun-song, Bank of Korea governor
- Setting
- Parliamentary audit at the Bank of Korea, Seoul
- Funds discussed
- Single-stock leveraged ETFs
- Earlier assessment
- A June financial stability report said the funds could help prevent domestic investment from flowing overseas and attract foreign funds
Sources
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