South Korea’s opposition demands probe into leveraged single-stock products after policy chief resigns

South Korea’s People Power Party said the resignation of presidential policy chief Kim Yong-beom should not end scrutiny of the government’s decision to introduce single-stock leveraged exchange-traded funds.

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He was driven out by the public. This cannot end with his resignation.

Party leader Jang Dong-hyeok wrote on Facebook that Kim had been “driven out by the public” and that the resignation could not close the matter. He described the leveraged ETFs as Kim’s creation and argued that they had turned the stock market into a gambling arena while benefiting securities firms.

Jang also pointed to the employment of Kim’s son and Financial Services Commission Chairman Lee Chan-jin’s son at the same securities firm. He questioned whether the circumstances warranted investigation and criticized the Board of Audit and Inspection, saying it had promised an audit but had produced no visible result. Jang said a special counsel inquiry might be necessary and argued that Kim could not have acted without President Lee’s knowledge.

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Single-stock leveraged ETFs were Kim Yong-beom’s creation. The stock market became a gambling arena, people’s bank accounts were stripped, and only securities firms made money.

Floor leader Jeom Jeong-sik said the party welcomed Kim’s dismissal, which opposition lawmakers and the public had demanded, but called it overdue. He said the move should produce a substantive policy shift rather than a symbolic personnel change. The party plans to seek a parliamentary investigation and special counsel inquiry into what it called the rushed introduction of the single-stock leveraged ETFs. Jeom also demanded the dismissal of Financial Services Commission Chairman Lee Eok-won and Financial Supervisory Service Governor Lee Chan-jin, whom he described as two remaining figures linked to the issue. He further suggested that Kim’s resignation may have been intended to divert attention as criticism intensified over a possible second Cabinet reshuffle and the nomination of Democratic Party lawmaker Kim Seung-won as justice minister.

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It must not end as a merely symbolic personnel change, but must lead to a substantive change in policy direction.