Financial Authorities Issue Fresh Apology Over Single-Stock Leverage ETF Losses

Financial Services Commission Chairman Lee Eok-won and Financial Supervisory Service Governor Lee Chan-jin issued a fresh apology today (the 22nd) regarding the single-stock leverage exchange-traded fund (ETF) controversy, stating they carry a "heavy heart."

The two heads made the remarks during the National Policy Committee's parliamentary audit of the FSC and FSS, after People Power Party lawmaker Kim Jae-seop brought up individual investors' losses stemming from single-stock leverage ETFs and demanded an apology.

Chairman Lee stated, "Despite the various policy necessities and the intent behind its introduction at the time, I carry a very heavy heart regarding the outcomes it has brought about," adding, "We will look more closely and meticulously into aspects such as investor protection and market stability."

Governor Lee also stated, "As the lawmaker pointed out, we humbly accept this issue and always carry a heavy heart. I also feel a deep sense of remorse toward the public here today," adding, "We will take this as an opportunity to reflect deeply and painfully on our role and responsibility as a financial supervisory body concerning investor protection."

According to statistics distributed by the FSS to lawmakers of the National Policy Committee the previous day, data compiled from 10 comprehensive financial investment businesses (Korea, Mirae Asset, NH, Meritz, Samsung, KB, Hana, Kiwoom, Shinhan, and Daeshin Securities) showed that total losses incurred by individual investors reached 6.313 trillion won from the launch of single-stock leverage exchange-traded products (ETPs) on May 27 through August 14.

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.