[Anchor]
Regarding the extreme volatility in the domestic stock market, Presidential Chief of Policy Kim Yong-beom stated that it is "not solely due to single-stock leveraged ETFs." He also attributed it to the dynamic investment characteristics of retail investors. On the other hand, Financial Services Commission Chairman Lee Eok-won, attending the National Assembly, bowed his head and said he "feels a heavy sense of responsibility." The opposition party lashed out, calling the stock market crash a "man-made disaster."
Reporter Kim Bo-mi has the details.
[Reporter]
President Lee Jae-myung's Chief of Policy Kim Yong-beom, who is accompanying the president on a state visit to Brazil,
addressed the recent extreme volatility in the domestic stock market, stating, "Many people talk as if a vast number of problems boil down to a single-stock leveraged ETF, but that is not necessarily the case."
He emphasized, "We must examine the overall situation, not just leveraged ETFs."
His remarks placed weight on the structural factors of South Korea's capital market.
At today's (July 29) full meeting of the National Assembly's National Policy Committee,
Lawmakers from the People Power Party criticized Kim's remarks as "sophistry to evade responsibility."
[Shin Dong-wook / People Power Party lawmaker: "He is saying things like, 'It's not just happening in our country.' Is this a remark that meets the public's expectations?"]
They also demanded a parliamentary investigation, demanding to reveal the background behind how the product in question was swiftly approved in just four months.
[Park Dae-chul / People Power Party lawmaker: "We diagnose this plunge crisis as a man-made disaster caused by the FSC and the FSS."]
[Lee Chan-jin / Governor of the Financial Supervisory Service: "We are taking this matter very seriously right now."]
Even within the Democratic Party, criticism emerged that responsibility for amplifying stock market volatility cannot be avoided.
[Kim Yong-man / Democratic Party lawmaker: "I think it is not unreasonable to view that this (leveraged ETF) is causing volatility right now. Do you agree?"]
Voices also emerged calling for swift countermeasures, such as adjusting the current 2x leverage ratio and restricting new purchases to professional investors only.
[Kim Hyun-jung / Democratic Party lawmaker: "(The ratio) is currently 2x, isn't it?"]
[Lee Eok-won / Financial Services Commission Chairman: "(Lowering the ratio) would likely be effective in terms of mitigating volatility."]
Financial Services Commission Chairman Lee Eok-won and Financial Supervisory Service Governor Lee Chan-jin expressed their apologies, stating that they "take the expanded volatility very seriously."
(Video filming: Lee Seung-hwan, Shin Dong-hwan | Video editing: Lee Seung-hee | Design: Park Tae-young)
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