[Anchor]

Regarding the single-stock leverage exchange-traded funds (ETFs) pointed to as the cause of sharp fluctuations in the domestic stock market, government responsibility is facing mounting criticism not only from the conservative opposition but also from parts of the pan-ruling camp. The People Power Party demanded a special counsel investigation or a parliamentary probe, while former Innovation Party leader Cho Kuk, from the pan-ruling camp, also urged for those responsible to be held accountable. The political sphere is also focusing on the background of why the product, originally planned for a second-half launch, was moved up to last May.

This is Kim Kwan-jin reporting.


[Reporter]

Amid growing market claims that the domestic stock market earned the stigma of a "rollercoaster KOSPI" due to single-stock leverage ETFs, People Power Party leader Jang Dong-hyuk demanded a special counsel investigation, and Floor Leader Jung Jeom-shik called for a parliamentary probe regarding the introduction process.

On social media, Floor Leader Jung argued that Presidential Chief of Policy Kim Yong-beom, Deputy Prime Minister for Economy Koo Yun-cheol, and Financial Services Commission Chairman Lee Eok-won should be summoned together to question why the product was introduced hastily and unreasonably.

Criticism was also raised within the pan-ruling camp.

Former Rebuilding Korea Party leader Cho Kuk posted on social media, "As the Democratic Party remains silent, I speak out as a 'red team,' and the 'failure of government-directed finance' cannot be glossed over." He raised his voice, saying, "The process—including the incomprehensible introduction and the delayed response that exacerbated the damage—must be brought to light, and those responsible must be held accountable."

They particularly take issue with the speed of policy implementation.

A Financial Services Commission meeting document written last January.

It contained suggestions that for the ETF in question, laws and regulations should be overhauled and systems developed before launching. Thus, 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 right 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 (July 31, YouTube channel Kim Ou-joon's Humble News Factory): "The preparation of this product's launch proceeded without even the ruling party knowing, and it is quite regrettable in the sense that the product came out without any party-government consultations...."]

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

[Lee Eok-won / Financial Services Commission Chairman (July 29, National Assembly's Political Affairs Committee Plenary Session): "This, you know, went through a series of procedures, and there was nothing specifically done to rush it or delay it for any particular reason."]

With the controversy surrounding leverage ETFs drawing calls for government accountability from both the conservative opposition and parts of the pan-ruling camp, the debate is expected to intensify further.

(Video Reporter: Oh Young-chun, Kim Yong-woo | Video Editor: Wi Won-yang | Designer: Han Heung-soo, Lee Ga-jin)