Opposition Party Claims 'Samsung Electronics and SK hynix leveraged ETF delisting'... Also Calls for National Assembly Investigation

News1 [Financial News] Criticism is emerging that the launch of the 'Samsungnix (Samsung Electronics and SK Hynix)' single-stock leverage ETF (Exchange Traded Fund) has caused extreme volatility in the domestic stock market. 1x or that the ETF should be delisted.
The People Power Party suspected that the Lee Jae-myung administration introduced leveraged ETFs to win the June 3 local elections and demanded a parliamentary investigation. People Power Party: "KOSPI has degenerated into a casino.
News1 [Financial News] Criticism is emerging that the launch of the 'Samsungnix (Samsung Electronics and SK Hynix)' single-stock leverage ETF (Exchange Traded Fund) has caused extreme volatility in the domestic stock market. 1x or that the ETF should be delisted.News1 [Financial News] Criticism is emerging that the launch of the 'Samsungnix (Samsung Electronics and SK Hynix)' single-stock leverage ETF (Exchange Traded Fund) has caused extreme volatility in the domestic stock market. 1x or that the ETF should be delisted.
The lawmakers attending the debate criticized that the introduction of the product had turned the KOSPI into a casino. Noting the emergence of single-stock leverage ETFs particularly ahead of the local elections, they argued that a parliamentary investigation is necessary.
Representative Jang Dong-hyuk stated, "Ahead of the local elections, Policy Chief Kim Yong-bum pressured the Financial Services Commission (FSC), asking why they were blocking something that was working on the NASDAQ. A few months after the FSC accepted this, a defective product appeared.
" He added, "The KOSPI has now become a casino, yet Chief Kim and President Lee Jae-myung are only saying that delisting is difficult without offering a single word of apology. " He further criticized, "They encouraged leveraged investing and boasted when stock prices rose, but now that the public's losses are growing, they are turning a blind eye.
" He continued, "It is not the attitude a president should display to claim the administration's credit when stock prices rise and the investors' responsibility when they collapse. " Representative Lee Jong-wook stated, "This product has turned our stock market into a high-short-term speculative arena and transformed Samsung Electronics and SK Hynix—representative blue-chip companies of Korea—into gambling stocks.
" He argued, "Only the practical removal of this product. " "It was a 'solution'," he said.
Representative Park Soo-young claimed, "Sidecars have been triggered 38 times and circuit breakers 7 times on the KOSPI this year. It is a very serious situation," adding, "Retail investors are suffering the greatest damage.
It is the 'Retail Killer Lee Jae-myung administration. '" Representative Park told the Financial News, "Even when we propose alternatives, the Democratic Party does not even apologize," stating, "A parliamentary investigation must be conducted first.
News1 [Financial News] Criticism is emerging that the launch of the 'Samsungnix (Samsung Electronics and SK Hynix)' single-stock leverage ETF (Exchange Traded Fund) has caused extreme volatility in the domestic stock market. 1x or that the ETF should be delisted.News1 [Financial News] Criticism is emerging that the launch of the 'Samsungnix (Samsung Electronics and SK Hynix)' single-stock leverage ETF (Exchange Traded Fund) has caused extreme volatility in the domestic stock market. 1x or that the ETF should be delisted.
" "It is merely a matter of course," they stated, arguing that margin and credit trading for leveraged products should be banned. 1x tracking.
He also suggested raising the entry barrier by increasing the minimum deposit requirement, which the Financial Services Commission raised from 30 million won, to 100 million won. Furthermore, he advised that "suspending sales is also an option.
" Yoon Jae-hong, Senior Research Fellow at Mirae Asset Securities Research Center, suggested that measures to set limits on individual investment ratios should be considered, while also pointing out that the current mandatory education, which is limited to just one session, is insufficient for educating investors about highly volatile investment products. Pyeon Eun-bi, Legislative Researcher at the National Assembly Research Service's Finance and Banking Division, pointed out that sufficient deliberation was not conducted during the process of introducing single-stock leveraged ETFs.
Investigator Pyeon suggested, "Before introducing the system, all possibilities should have been anticipated and reviewed through sufficient consultation. " He added, "Since the system was introduced through amendments to enforcement decrees and subordinate regulations, the National Assembly could not participate in policy design; therefore, a forum for discussion is needed during the policy-making process.
" Arguments for delisting were also raised.
Jeong Eui-jeong, Representative of the Korea Stock Investors Association, emphasized, "While they claim delisting is impossible, this is an arrogant attitude that disregards the shareholders," adding, "The damage would be less if the company were delisted than if the current status were maintained.
" He also added that state-level compensation for investors is necessary using a portion of the securities transaction tax.
News1 [Financial News] Criticism is emerging that the launch of the 'Samsungnix (Samsung Electronics and SK Hynix)' single-stock leverage ETF (Exchange Traded Fund) has caused extreme volatility in the domestic stock market. 1x or that the ETF should be delisted.
[email protected] Lee Hae-ram Reporter