"Illusion That Market Correction Is Due to Leverage… It Is Our Duty to Supplement"

[Anchor]

President Lee Jae-myung pointed out that there is criticism that "Single-stock Leveraged ETF" products, which have been identified as a cause of rapid stock price fluctuations, have increased instability in the market more than necessary. He emphasized that because they were introduced during a market correction phase, there is an illusion that the problems are more serious than they are, and that it is the government's duty to create supplementary measures.

Reporter Park Yerim has the story.

[Reporter]

Presiding over a cabinet meeting, President Lee Jae-myung brought up investor complaints regarding "Single-stock Leveraged ETF" products based on underlying assets such as Samsung Electronics or SK Hynix.

[President Lee Jae-myung: There is criticism that this has exacerbated the adjustment, or some of the sharp declines, following the rapid rise in stock prices.]

He mentioned that there are two sides to the argument: that it "exacerbated instability in the stock market" and that it "had the effect of reducing foreign exchange outflows."

[President Lee Jae-myung: It actually intensifies and aggravates the rise during an upturn, and it intensifies the decline during a downturn.]

Regarding the recently announced supplementary measures by financial authorities, such as raising deposit requirements, he said the following.

[Lee Eok-won/Chairman of the Financial Services Commission: We announced the measures last Thursday.]

[President Lee Jae-myung: But there are criticisms asking whether that will be enough.]

President Lee noted that because the Single-stock Leveraged ETF was introduced at the peak of a market correction, there appears to be an illusion that the problems are serious because of it, while reiterating the need for supplementary measures.

[President Lee Jae-myung: Stock market participants believe that this has increased volatility and deepened the losses, feeling they have been harmed, so it is our duty to create supplementary measures regardless.]

Regarding real estate policy, President Lee stated that unearned income from real estate is the main culprit destroying fairness and common sense and hindering national unity, and he requested swift supply measures and the rational reorganization of the tax system.

The People Power Party claimed that the government pushed for the Single-stock Leveraged ETF, a high-risk product, in a hasty manner within just five months, causing astronomical losses for retail investors.

[Jang Dong-hyuk/Representative of the People Power Party: These days, the public is calling our stock market a KOSPI Casino. Now, sidecars and circuit breakers have become a daily occurrence.]

The People Power Party demanded the dismissal of Policy Chief Kim Yong-beom and an apology from President Lee.

(Video reporting: Jung Sang-bo, Ha Ryung | Video editing: Jang Hyun-ki)
※ Please note: This article was translated by AI and may contain errors.