Cheong Wa Dae stated regarding single-stock leveraged ETFs (exchange-traded funds), which have been cited as one of the causes of recent volatility in the domestic stock market, that "it is true that we are closely monitoring the situation and reviewing additional measures with post-management if necessary."

Appearing on CBS Radio's "News Show" today (Aug. 6), Sung Ki-hong, Senior Secretary to the President for Public Communication, noted that recent stock price volatility is attributed to factors such as increased volatility in global semiconductor stock prices, concentration in large semiconductor stocks, and foreign investors' profit-taking and rebalancing, while explaining, "We believe that the market concentration in single-stock leverage has contributed to expanding volatility."

This is interpreted to mean that while Cheong Wa Dae fully recognizes that leveraged ETFs have been a factor in amplifying stock market volatility, it intends to first observe market reactions, given that financial authorities recently introduced measures such as raising the basic deposit requirement.

Regarding the accountability calls raised against Policy Chief Kim Yong-beom due to the confusion caused by leveraged ETFs, Senior Secretary Sung drew a line, stating, "It is more important right now to carefully monitor the market and look after countermeasures."

Concerning real estate supply measures, Senior Secretary Sung said, "The government is approaching this with an extraordinary determination," adding, "Although the schedule has not been finalized, we will have them announced as soon as possible."

Describing the tax code revision recently announced by the government, he noted, "The goal of this revision is not a short-term response to stabilize the real estate market, but rather to achieve fair taxation and enhance tax equity."

He went on to convey, "(In this context) the core is to protect single-home owners for residency as much as possible while stepping up the burden for holders of housing above a certain value, non-resident housing holders, and multi-home owners back to normal levels."

He also explained, "As the President has stated on multiple occasions, the government does not have the mindset of controlling housing prices through taxes," adding, "To stabilize real estate, we are devising multifaceted measures such as expanding housing supply and rationalizing housing finance."

To the criticism that the recent tax revision could worsen the key money (jeonse) and monthly rent crunch and increase the burden on tenants, he remarked, "We are listening closely to the voices of the public," and "Some institutional devices have been prepared to protect tenants, and it is structurally difficult for property tax hikes to be entirely passed on to that side (the tenants' burden)."

He added, "Moving forward, the government will continuously pursue plans to expand the supply of public rental housing and alleviate the housing cost burden for youth and the homeless (those without homes) to stabilize jeonse and monthly rent markets."

Regarding the amendment to the Criminal Procedure Act, which bans prosecutors from conducting direct investigations and supplementary investigations, he explained, "While maintaining the grand principle of separating investigation and indictment, the President has expressed various concerns regarding the abolition of supplementary investigation rights," but added, "The legislature passed the bill, and it is difficult to see any serious problems that warrant exercising the veto power, so it was resolved (at the Cabinet meeting)."

Regarding the controversy sparked yesterday (Aug. 5) during the work reporting process when President Lee said, "I haven't read the amended Criminal Procedure Act, so I'm asking, does the bill say prosecutors must not investigate?", he stated, "The President is naturally well-aware of the contents of the bill."

In particular, he explained, "When the law goes into effect immediately, weren't there differences in interpretation among ministers regarding what level prosecutors can be involved in investigations at the joint investigation headquarters?", and "That remark came out in the process of asking questions about how each understands it in detail."

(Photo: Yonhap News)