Seoul Mayor Slams Stock Market as 'Gambling Den' Amidst Volatility

Seoul Mayor Oh Se-hoon has sharply criticized the recent volatility in the stock market, likening it to a "gambling den" due to the influence of leveraged products on single stocks. He called for an investigation into the market's rapid fluctuations, which he believes are distorting financial activities.

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Even without events like 9/11 or COVID-19, the capital market is turning into a gambling den. This is clearly a man-made disaster.

"Even without events like 9/11 or COVID-19, the capital market is turning into a gambling den," Oh stated on Facebook. He attributed the situation to the approval of high-risk, single-stock leveraged derivative products, arguing that regulators stood by while individual investors' assets were wiped out. "This is clearly a man-made disaster," he asserted, criticizing the delayed implementation of measures like raising the minimum deposit for such products to 30 million won, scheduled for November.

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This is clearly a man-made disaster. The result of approving single-stock leveraged derivative products despite knowing the risks, and standing by until individual investors' assets were wiped out.

Oh further contended that the government and ruling party's promotion of the stock market's rise, including the KOSPI index, ultimately fueled speculative overheating. He warned that liquidity escaping the market was subsequently stimulating the real estate sector in Seoul and the surrounding metropolitan area. The mayor expressed concern that the fallout from this volatile market could ultimately impact housing prices.

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The government and ruling party's promotion of the KOSPI rise ultimately led to blind overheating of the market, and liquidity straying from this is fiercely stimulating the real estate market in Seoul and the metropolitan area.