Rebuilding Korea Party seeks Financial Services Commission chief’s resignation over leveraged ETFs

  • Rebuilding Korea Party demanded Lee Eog-weon’s resignation over single-stock leveraged ETF oversight.
  • July 16 measures raised individual investors’ cash deposit requirement from 10 million to 30 million Korean won.
  • Kim Yong-beom resigned September 1 after President Lee Jae Myung accepted his letter.

The Rebuilding Korea Party on September 1 demanded the resignation of Lee Eog-weon, Chairperson of the Financial Services Commission, holding him responsible for the introduction of single-stock leveraged ETFs and the authorities’ delayed response to subsequent market volatility and investor losses. The demand followed the resignation of Kim Yong-beom, presidential chief of staff for policy, which President Lee Jae Myung accepted earlier that day. The party said Kim’s departure did not resolve accountability for the financial policy and supervision failures. The Financial Services Commission announced in January that it would introduce single-stock leveraged products based on domestic blue-chip stocks to align with global ETF regulations. Products offering ±2x exposure to Samsung Electronics and SK Hynix launched on May 27. After trading volumes rose and concerns about volatility intensified, the Commission and related agencies announced measures on July 16, including suspending new listings temporarily, raising individual investors’ cash deposit requirement from 10 million Korean won to 30 million Korean won, and banning promotional marketing. Lee later said lower leverage ratios and individual investment limits were under review. The Rebuilding Korea Party argued that the authorities’ investor warnings and delayed safeguards undermined market trust, while the People Power Party called Kim’s resignation a scapegoating tactic and demanded a parliamentary probe and special counsel investigation into the products’ introduction.

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Rebuilding Korea Party seeks Financial Services Commission chief’s resignation over leveraged ETFs - CoinPost Terminal