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🇰🇷 South Korea /Economy & Trade

People Power Party seeks inquiry into ‘Samjeon-Nics leverage’ losses exceeding 56 trillion won

From Hankyoreh · () Korean

Translated from Korean and summarized by DistantNews. Read the original for the full story.

At a glance

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  • The People Power Party submitted a request for a parliamentary investigation into the introduction of single-stock leveraged ETFs and their impact on market volatility.
  • The party said an investigation should determine how the products were introduced, whether their risks were assessed and who bears responsibility for investor losses.
  • Lawmaker Kim Seung-soo cited an estimate that losses linked to the products exceeded 56 trillion won and called for punishment, including a possible special counsel probe.

The People Power Party has asked the National Assembly to investigate single-stock leveraged exchange-traded funds, arguing that the products have increased stock-market volatility and caused heavy losses for individual investors.

The inquiry into single-stock leveraged ETFs is not for political confrontation, but for people’s livelihoods. I expect the Democratic Party to participate.

· Seo Il-junSeo urged the governing party to support the parliamentary investigation.

Kim Seung-soo, the party’s senior floor operations deputy, Kim Mi-ae, its senior policy deputy, and Seo Il-jun, the ruling party’s floor liaison on the National Assembly’s Political Affairs Committee, submitted the request on Sept. 4. The proposed inquiry would examine the “market distortion caused by single-stock leveraged ETF products,” determine responsibility for losses suffered by retail investors and develop measures to prevent a repeat.

Seo said the request was “not for political confrontation, but for people’s livelihoods.” He called on the Democratic Party to participate, saying financial policy has a major effect on people’s assets. The inquiry, he said, should examine how single-stock leveraged ETFs were introduced and whether officials had properly analyzed their problems.

Financial policy has such a major effect on people’s assets that we need to thoroughly examine how single-stock leveraged ETFs were introduced and whether their problems were analyzed.

· Seo Il-junSeo explained why he said the product’s introduction required scrutiny.

Kim said a study by a specialist institution had estimated that losses caused by single-stock leveraged ETFs exceeded 56 trillion won. He said victims had lost money saved through years of work, including wedding funds and retirement savings, and argued that responsibility should be established through both a parliamentary inquiry and, where necessary, a special counsel investigation.

A study by a specialist institution has even found that losses caused by single-stock leveraged ETFs exceeded 56 trillion won.

· Kim Seung-sooKim cited the estimated scale of investor losses.

Kim said the governing party had no reason or justification to oppose the inquiry. He urged it to agree quickly and support a special counsel investigation if the parliamentary probe found problems.

Victims who lost all the money they saved through hard work, including wedding funds and retirement savings, are eagerly awaiting a parliamentary inquiry and a special counsel investigation to clearly establish responsibility and punish those who must be punished.

· Kim Seung-sooKim described the losses suffered by individual investors and called for accountability.
About this summary

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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