Lee Eok-heon: "Single-Stock Leverage ETFs Introduced After Listening to Diverse Opinions"

▲ Financial Services Commission Chairman Lee Eok-heon gives a work report during a parliamentary audit of the Financial Services Commission and other agencies held by the National Policy Committee at the National Assembly on October 8.

Financial Services Commission Chairman Lee Eok-heon explained on October 8 in response to opposition lawmakers' questions about whether single-stock leverage exchange-traded funds (ETFs) were introduced under instructions from the presidential office, saying, "That is not true. We listened to a variety of opinions."

During the National Policy Committee's parliamentary audit of the Financial Services Commission and other agencies held this morning, Chairman Lee responded to related questions from People Power Party lawmaker Park Jun-tae by stating, "The legal basis for the introduction is the revision of the enforcement decree, and the revision of the enforcement decree falls under the jurisdiction of the Financial Services Commission."

He gave similar explanations to subsequent related questions from other People Power Party lawmakers.

Chairman Lee stated, "The need has continuously been raised for a long time, with people asking why investments in single-stock leverage ETF products are allowed overseas but blocked domestically."

Regarding an overseas investment bank report analyzing that individual investors suffered about 54 trillion won in losses due to single-stock leverage ETFs, he stated, "It is not an official release by the entity itself, but rather an unofficial market commentary by their trading desk, and the actual contents are also inaccurate."

However, regarding issues such as increased volatility in the domestic stock market caused by single-stock leverage ETFs, he said, "Regardless of the necessity of introducing the policy, I feel apologetic for consequently causing various losses, concerns, and damages," adding, "We will continue to monitor the situation closely."

(Photo: Yonhap News)

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