[South Korea's Financial Services Commission Reportedly Did Not Conduct Stress Tests on Single-Stock Leveraged ETFs, Only Completed Structural Risk Assessments] According to Deep Tide TechFlow, on August 3, South Korean media outlet MT reported that the Financial Services Commission (FSC) of South Korea conducted internal reviews of structural risks before launching single-stock leveraged ETFs. However, it did not carry out stress tests on specific products or simulate potential market impacts in scenarios where heavyweight stocks like Samsung Electronics and SK Hynix experience significant declines. Internal review documents from the FSC indicate that single-stock leveraged ETFs exhibit higher volatility compared to leveraged products tracking market indices. They carry the risk of "volatility decay," which can lead to long-term losses, and may further amplify price fluctuations of the underlying stocks during rebalancing processes. However, the analysis primarily focused on the general structural risks of leveraged ETFs and did not evaluate the potential impact on related ETF products and market liquidity in cases of extreme declines in stocks like Samsung Electronics and SK Hynix. This controversy has once again drawn attention in the South Korean market to the risk management of high-leverage ETFs. As single-stock leveraged products continue to expand, whether regulatory authorities need to introduce stricter stress testing mechanisms has become a focal point of market discussions.