The Korean Financial Services Commission requires the rebalancing of single-stock leveraged ETFs to be conducted throughout the entire trading day.

Odaily reported, citing Yonhap News Agency, that Lee Eog-weon, Chairman of South Korea's Financial Services Commission, on Tuesday urged asset management companies to spread out single-stock leveraged ETF rebalancing trades throughout the trading day in order to curb sharp price fluctuations caused by large order volumes before market close. Fund management companies typically conduct most of their rebalancing between 3:20 p.m. and 3:30 p.m. local time to achieve the goal of doubling the daily returns of the underlying stocks. If these trades are concentrated near the close, they could accelerate upward trends and deepen declines. Lee Eog-weon stated, "The market is concerned that concentrated rebalancing operations before market close will amplify market volatility. Trading times need to be diversified." He also pointed out that some products involve more than 20 liquidity providers, leading to excessive turnover, increased trading among themselves, and expanded arbitrage activities.