▲ Policy Chief Kim Yong-beom
The Blue House has stepped in to address the controversy surrounding the potential delisting of single-stock leveraged exchange-traded funds (ETFs).
On Sunday (July 19), Kim Yong-beom, the Blue House Policy Chief, appeared on KBS's "Sunday Diagnosis Live" and stated that it is difficult to imagine the delisting of single-stock leveraged ETFs.
His remarks suggest that because more than 10 trillion won in capital has already flowed into these products, a delisting would cause a massive shock to the market if it were to become a reality.
Kim mentioned recent supplementary measures, such as raising the basic deposit requirement to 30 million won in cash, and predicted that these steps would significantly mitigate potential side effects.
However, he pointed out that since the impact of leveraged products doubles in a declining market, further discussions are necessary to minimize market shocks.
In particular, he added that authorities would discuss ways to appropriately manage selling pressure to reduce the tracking error, which refers to the difference between the actual value and the market price of the fund.
Regarding the so-called "triple strength" phenomenon, where housing prices, jeonse (lump-sum deposit rental), and monthly rent are all rising simultaneously, he bowed his head and apologized to the many citizens affected.
Explaining the background of his comment last month that housing must be built "at all costs," he stated that it was an expression of his desperate sentiment that all possible methods, such as purchasing non-apartment properties for lease, must be mobilized to produce short-term results.
On the other hand, he drew a line regarding redevelopment and reconstruction, noting that they take at least three to five years and are not a "master key" to solving immediate supply issues.
Regarding the plan to supply housing by utilizing semi-industrial zones in Seoul, he said he has scheduled a separate meeting with Seoul Mayor Oh Se-hoon to achieve significant results through collaboration with the central government.
Concerning the principles of real estate tax reform, which has been drawing attention, he emphasized that the government would distinguish between multi-home owners and single-home owners, and apply different standards based on whether the property is used for actual residence.
He showed a cautious reaction to claims by some that raising holding taxes while lowering capital gains taxes would encourage properties to hit the market, stating that it is difficult to make a blanket statement.
He clarified his intention to consider tax equity, suggesting that the system could be designed to allow owners to sell at an appropriate time, while increasing the burden if that window is missed.
He actively denied allegations that investment projects in the U.S. are being delayed, stating that they are proceeding according to an appropriate schedule.
He also revealed that preparations are underway without setbacks to ensure that the first U.S. investment project becomes visible as early as August or September.
Finally, regarding the introduction of the "K-New Deal Academy" to help young people enter the labor market, he set a goal of allowing them to use the "Republic of Korea chance" instead of the "mom-and-dad chance," which refers to relying on parental influence.
(Photo: Yonhap News)
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