Korean lawmakers are studying whether investors’ losses caused by the leveraged ETF tied to Samsung Electronics and SK hynix should be pursued through national compensation. Less than two months after the rules were loosened, the market has already gone through trading halts, liquidations, and large drawdowns.

Investment losses are not the same as the state automatically picking up the tab, but why did regulators rapidly open 2x leverage on highly volatile underlying assets? They must provide a public explanation. Whether compensation is paid is one matter, but the policy process cannot rely solely on retail investors signing off.

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