Even the ruling bloc has turned away from the Samsung Electronics and SK hynix leveraged ETF issue... Jang Dong-hyuk says he will push for a special prosecutor

[Financial News] Jang Dong-hyuk, leader of the People Power Party, said on the 5th that he would push for the appointment of a special prosecutor to investigate the process of introducing the Samsung Electronics and SK hynix leveraged ETF. With even the Rebuilding Korea Party (RKP) joining the criticism, he is stepping up pressure on the government.
At a press briefing at the National Assembly that day, Jang said, "We need to determine through a special prosecutor whether the introduction of the leveraged ETF was effectively a stock manipulation scheme designed to funnel benefits to specific companies," adding, "A National Assembly investigation is a given, and it should go all the way to a special prosecutor."
The People Power Party believes the Samsung Electronics and SK hynix leveraged ETF was introduced quickly under the direction of Kim Yong-beom, then the Blue House policy chief, and was intended as a stock market stimulus measure ahead of the June 3 local elections. It has therefore proposed a National Assembly investigation into how it was rushed through despite concerns inside and outside the financial authorities, as well as allegations that pension funds, including the National Pension Service (NPS), were mobilized. Jang also argued that a special prosecutor should determine whether illegal acts, such as improper lobbying, took place.
Jang also took issue with former RKP leader Cho Kuk's characterization of the leveraged ETF controversy as a "policy failure." He said, "A policy failure is when something is implemented with good intentions because it is thought to be necessary, but problems arise. In this case, they pushed ahead even though they knew there would be problems," adding, "We need to examine whether there were other issues, such as lobbying or improper collusion."
On the same day, Cho said the Samsung Electronics and SK hynix leveraged ETF controversy was the government's responsibility and called for the Blue House civil affairs office to inspect Kim, Lee Eok-won, chairperson of the Financial Services Commission, and Lee Chan-jin, governor of the Financial Supervisory Service.
Jang pointed out that Kim's son and Lee's son work at Mirae Asset Global Investments. He said, "Would any ordinary citizen really believe that the children of officials in key government posts, working at securities firms, had no influence on the operation of those firms?" He again raised the need for a special prosecutor.
Earlier, the Democratic Party of Korea (DPK) dismissed the controversy, saying it was not a matter for a National Assembly investigation and that efforts should focus on preparing corrective measures. However, with the People Power Party demanding not only a National Assembly investigation but also a special prosecutor, and even the ruling bloc joining the criticism, the government is coming under pressure. Moreover, foreign media have also pointed to the Lee Jae Myung administration as the cause, adding to criticism at home and abroad.

[email protected] Kim Yun-ho Reporter