Korea's FSC misled the National Assembly on whether it stress-tested single-stock leverage ETFs before launch. Chairman Lee Eok-won told the Financial Services Committee last week "we conducted the review," but documents FSC itself submitted this week show no actual stress test happened, neither internal nor through an outside institution. The gap between the claim and the paper trail: when PPP's Park Sung-hoon asked in the July 29 committee session whether risk analysis including a stress test had been done before launch, Lee answered "it was all reviewed" and promised to provide documentation. What FSC actually submitted was a 2024 Korea Capital Market Institute report on leverage/inverse ETF performance factors, rebalancing volume by leverage multiplier, and market cap/trading volume statistics for stocks like Samsung and SK Hynix as of March. No specific shock scenario modeling a Samsung or Hynix price crash, the thing an actual stress test would produce, showed up anywhere. This is the same product category flagged earlier this month for pushing combined Samsung + Hynix trading volume to 83% of total market volume and tightening the correlation between those two stocks and the entire KOSPI index. FSC itself has already publicly warned these products carry higher loss risk than standard leverage ETFs due to volatility amplification through daily rebalancing, and that excessive trading driven by these products degrades individual investor outcomes and needs policy intervention. So the regulator approved and launched a product it now says needs policy intervention to manage, warned publicly about its risks after the fact, and when directly asked in a hearing whether it had actually tested for the failure scenario, said yes when the paper trail says no.