Single stock leveraged ETF loss of 56 trillion won... People Power Party submits request for government investigation

On the 4th, the People Power Party submitted a request for a government investigation, saying that the policy-making process and responsibility should be investigated in relation to the introduction of the single-stock leveraged exchange-traded fund (ETF), which was pointed out as the cause of the so-called roller KOSPI.

Senior Deputy Floor Leader Kim Seung-soo, Senior Vice President for Policy Kim Mi-ae, and National Assembly Political Affairs Committee Secretary Seo Il-jun visited the National Assembly's Legislation Department this morning and submitted a request for a government investigation to identify those responsible for market distortion and individual investor losses caused by specific single-stock leveraged ETF products and prepare measures to prevent recurrence.

In its request, the People Power Party stated that it would investigate "the specific details of the request for introduction of the Financial Services Commission, which former Director of Policy at the Presidential Office Yong-beom Kim stated in a press interview in January of this year, the degree of involvement in the subsequent policy-making process, whether the Financial Services Commission and the Financial Supervisory Service raised cautious or opposing opinions, suspicions regarding the processing process, and suspicions of collusion with financial institutions related to this."

In addition, the People Power Party's policy is to analyze the correlation between the time leading up to the 2026 local elections and the time of product introduction and expansion, and whether political purposes such as boosting the capital market took priority over investor protection procedures.

The National Assembly Investigation Committee was composed of a total of 18 members, with the Democratic Party of Korea and the People Power Party, the negotiation groups, appointing an equal number of 8 members each. The subject of the investigation is the overall consultation, reporting, and instruction system between the Presidential Secretariat, Financial Services Commission, Financial Supervisory Service, Korea Exchange, and the asset management industry.

Senior Vice President Kim met with reporters after submitting the request and said, "According to a tracking investigation by a professional organization, the loss due to single-stock leveraged ETFs exceeds 56 trillion won. Since many citizens are involved, there is no reason or justification for the ruling party to oppose. We expect and urge that they quickly respond to the national investigation and even agree to a special prosecutor immediately if problems are discovered."

Policy Committee Chairman Lim I-ja mentioned former Chief Kim's resignation at the party's floor plan meeting that day and said, "There are growing suspicions that this is a Korean version of tail cutting to hide the dark connection between policy power and the financial industry. We will clearly reveal this through a government investigation."

This request for a government investigation was proposed under the People Power Party platform.

Under the National Assembly Act, in order to request a government investigation, more than one-fourth of the registered members must agree. In order for the right to investigate government affairs to be activated, the approval of a majority of the members present at the plenary session is required.