"ETF Special Counsel and Parliamentary Probe" Attacks Intensify... "Why the Rush to Launch?"

[Anchor]

Regarding single-stock leveraged ETFs, which have been pointed to as the cause of sharp fluctuations in the domestic stock market, the People Power Party has demanded a special counsel investigation or a parliamentary investigation, while former Rebuilding Korea Party leader Cho Kuk called for holding those responsible accountable. Political circles are also focusing on why the launch, which was initially proposed for the "second half of the year" during initial discussions in January, was moved up to May.

Here is reporter Kim Kwan-jin with the details.

[Reporter]

Amid growing market claims that single-stock leveraged ETFs are to blame for the domestic stock market earning the dishonorable moniker of a "roller-coaster Kospi," People Power Party leader Jang Dong-hyeok has called for a special counsel investigation, while floor leader Chung Jeom-shik has demanded a parliamentary investigation into the adoption process.

Writing on social media, floor leader Chung argued that figures such as Blue House Chief Policy Officer Kim Yong-beom, Deputy Prime Minister for Economic Affairs Koo Yun-cheol, and Financial Services Commission Chairman Lee Eok-won should be summoned together to question why the product was introduced in such a hasty and reckless manner.

Criticism has also emerged from within the pan-ruling camp.

Former Rebuilding Korea Party leader Cho Kuk raised his voice on social media, stating, "Since the Democratic Party is silent, I am speaking out as a 'red team,' but we cannot simply gloss over the 'failure of government-directed finance.' The process, including the incomprehensible introduction and the delayed response that exacerbated the damage, must be brought to light, and those responsible must face accountability."

They take particular issue with the pace at which the policy was pushed forward.

A Financial Services Commission meeting document written last January.

It contained suggestions to overhaul relevant laws and regulations, develop systems, and then launch the ETF. During these "initial discussions," the launch timing was proposed for the "second half of this year."

However, it actually appeared on the market four months later in May.

Former leader Cho claimed that despite experts' warnings that it was hasty, it was launched just before the local elections in June, calling the process a "mystery."

There are voices of concern within the Democratic Party as well.

[Park Hong-bae / Democratic Party lawmaker (on July 31, YouTube channel "Kim Ou-joon's Humility is Hard News Factory"): It is quite regrettable from the standpoint that preparations for this product's launch proceeded without even the ruling party knowing, and without party-government consultations....]

The government's explanation regarding the launch process was as follows.

[Lee Eok-won / Financial Services Commission Chairman (on July 29, National Assembly's Political Affairs Committee plenary session): This went through, you know, a series of procedures, and there was, well, no particular reason why it was rushed or delayed for any specific purpose.]

As the conservative opposition as well as parts of the pan-ruling camp raise issues regarding government responsibility over the leveraged ETF, the controversy is expected to intensify further.

(Video reporting: Oh Young-chun, Kim Yong-woo | Video editing: Wee Won-yang | Design: Han Heung-soo, Lee Ga-jin)
※ Please note: This article was translated by AI and may contain errors.