Oh Se-hoon said single-stock leveraged ETFs worsened volatility, criticized a delayed margin-rule response and accused the government of exposing retail investors to heavy losses.
Seoul Mayor Oh Se-hoon escalated his criticism of South Korea’s market policy after the KOSPI sidecar was triggered 37 times this year, surpassing the 26 recorded in all of 2008 during the global financial crisis. In a July 17 Facebook post, Oh said the government approved single-stock leveraged exchange-traded funds despite knowing the risks, then responded too late after retail investors’ assets had been wiped out. He said the capital market had become a last refuge for younger people seeking upward mobility, only to turn into a trap as volatility intensified. Oh also criticized authorities for belatedly raising the minimum deposit for single-stock leveraged ETFs to 30 million won ($21,700), and took aim at President Lee Jae-myung’s call to cancel long-delinquent debt, arguing the government was both pushing young people toward speculation and then seeking credit through debt relief.