FSS Chief Warns Asset Managers Over False ETF Advertising

According to Seoul Economy, on July 13, Financial Supervisory Service (FSS) Chief Lee Chan-jin warned South Korean asset managers over misleading exchange-traded fund (ETF) advertisements during a meeting with 20 major company CEOs in Seoul. Lee stated that false or exaggerated advertising by asset managers poses a serious investor protection concern, noting that such cases occurring frequently among major firms is "deeply regrettable."

The warning was directed at cases including Korean Investment Trust Management's false promotion of SpaceX IPO access through ETF purchases prior to the public offering, which the company failed to secure allocation for. Additionally, Lee urged asset managers to strengthen controls over net asset value (NAV) discrepancies in ETF management, citing 57 excessive discrepancy disclosure cases in single-stock leveraged ETFs last month.