South Korea's Lee flags won weakness and leveraged product risks

South Korea’s President Lee Jae Myung signaled concern over persistent won weakness, calling USD/KRW levels around 1,500–1,600 “strange” given the country’s current account surplus. His comments, alongside the finance ministry’s view that the won remains undervalued, could lend modest support to KRW if they foreshadow policy action or stronger verbal intervention. Lee also highlighted criticism that leveraged products amplified recent stock volatility, increasing the likelihood of tighter regulation after the Financial Services Commission already tripled deposit requirements for single-stock leveraged ETFs. Meanwhile, the Kospi rebounded more than 2% after sharp losses on Monday and Friday, suggesting bargain hunting is stabilizing sentiment for now, even as officials keep pressure on both FX and equity-market excesses.