"Fast-Tracked ETF Review to Meet Schedule" ... "Should Have Laid Down to Stop It"

[Anchor]

At the parliamentary audit of the Financial Supervisory Service (FSS) today (October 19), who bears responsibility for the introduction of single-stock leveraged ETFs was a key issue. Regarding the controversy over a rushed review, FSS Governor Lee Chan-jin answered that the review was expedited to meet the listing schedule for the product. In response, the opposition party harshly criticized him, saying he should have blocked it even by lying down.

Ha Jeongyeon reports.

[Reporter]

The parliamentary audit of the Financial Supervisory Service held at the National Assembly.

Lawmakers from the People Power Party questioned whether the "single-stock leveraged ETF" products had been introduced in haste.

They pointed out that, unusually, the FSS proceeded with its review even before the preliminary review by the Korea Exchange was completed.

[Park Dae-chul / People Power Party Lawmaker: This is the first time a review was conducted before the preliminary review was completed, isn't it?]

[Lee Chan-jin / Governor of the Financial Supervisory Service: After checking, that seems to be the case. The Financial Services Commission made a policy announcement regarding the listing schedule. To meet that schedule, we expedited part of the review (for the single-stock leveraged ETF).]

Opposition lawmakers pressed on who made the decision to introduce them and asked whether it was former Blue House Chief of Staff for Policy Kim Yong-beom, but Governor Lee avoided giving a direct answer.

[Park Seong-hoon / People Power Party Lawmaker: Who played a key role in the introduction, and who was the starting point?]

[Lee Chan-jin / Governor of the Financial Supervisory Service: I do not think it is appropriate for me to comment.]

Questions also poured in regarding Governor Lee's own remark at a press briefing in June, where he said he "should have laid down to block" the launch of the product.

[Kim Jae-seop / People Power Party Lawmaker: Why didn't you lie down to block it? Whether in advance or in hindsight, I feel you had a responsibility to stop it.]

[Lee Chan-jin / Governor of the Financial Supervisory Service: I delivered such a strong message to sound an alarm for investors. I have a very heavy heart regarding the outcome.]

In response to criticism pointing to the product as a reason for the recent plunge in the Kospi, Governor Lee also answered that it was partly a factor.

Regarding the AI hacking incident targeting the financial sector, with the heads of the five major banks in attendance, lawmakers lashed out with criticism that the banks failed in their initial response and were shifting the burden of proving damages onto customers.

FSS Governor Lee Chan-jin stated that he would officially hold chief executive officers of financial institutions accountable for internal controls.

(Video by Kim Yong-woo | Video Editing by Choi Hye-young)
※ Please note: This article was translated by AI and may contain errors.