Cho Kuk, head of the Innovation Policy Institute of the Rebuilding Korea Party, criticized the introduction of single-stock leverage exchange-traded funds (ETFs)—which have been pointed to as the cause of sharp fluctuations in the stock market—as a "failure of state-directed finance created by key policy figures in the government, led by Presidential Policy Chief Kim Yong-beom."

Writing on Facebook today (August 5), Cho stated, "We cannot let this obvious failure of state-directed finance pass by vaguely, and accountability must be demanded from figures such as Policy Chief Kim, Minister for Government Policy Coordination Yoon Chang-ryul, Financial Services Commission Chairman Lee Eok-won, and Financial Supervisory Service Governor Lee Chan-jin."

Cho argued, "From the incomprehensible and 'mysterious' introduction process to the belated response that worsened the damages and ineffective stopgap measures, the entire process from start to finish must be uncovered and those responsible must be held accountable." He added, "Based on my past experience as Senior Secretary to the President for Civil Affairs, an inspection by the Office of the Senior Secretary for Civil Affairs regarding those involved in this situation is necessary."

"This is also necessary for the success of the Lee Jae-myung administration," Cho emphasized, adding, "It is also a response to the anger of the citizens who are shedding tears of blood due to forced liquidation."

Cho pointed out, "Despite experts pointing out that it was hasty, Policy Chief Kim pushed for its introduction and built up momentum, leading to 16 single-stock leverage ETFs hitting the market just before the June 3 local elections." He continued, "After the elections, FSS Governor Lee Chan-jin reportedly said that they 'should have lain down to block it,' making it impossible not to call the policy-making process a mystery."

He also criticized, "One cannot help but wonder why the government pushed so loosely and hastily for a 'money move' from real estate to the stock market. Young people were caught in the leverage trap laid by the government, leaving them with lifelong trauma and debt."

At the same time, he claimed, "It has been observed that a small faction that reaped massive speculative profits amid extreme volatility is triggering a reverse money move, pouring the massive liquidity swept from the stock market back into the real estate market."

Urging structural alternatives, Cho stated, "Instead of a government that encourages young people to invest in stocks, we must become a government that invests in young people. We must 본격화 (intensify/formalize) the preparation of structural alternatives, such as institutionalizing social inheritance through a basic asset system for youth."

(Photo: Yonhap News)