Opposition lawmakers on the National Policy Committee: "We will pursue a parliamentary investigation into leverage ETFs—and a special prosecutor if illegality is confirmed"

[Financial News] On the 3rd, People Power Party lawmakers on the National Assembly's National Policy Committee announced that they would pursue a parliamentary investigation into single-stock leveraged exchange-traded funds (ETFs). They intend to summon not only Kim Yong-bum, the former head of the Cheong Wa Dae Policy Office who recently resigned, but also key policy officials before the Special Committee for Parliamentary Investigation. They also plan to pursue a Special Prosecutor Act if illegal acts are confirmed through the investigation.
Seo Il-jun, the People Power Party secretary of the National Assembly's National Policy Committee, held a press conference at the National Assembly Communication Center that day and said, "Kim's resignation cannot bring this situation to an end." The press conference was attended by Seo and other National Policy Committee members, including Park Dae-chul, Song Eon-seok, Kim Jae-seop, Choi Eun-seok, Cho Jung-hun, Park Jun-tae, and Park Sung-hoon.
They said, "The public is asking that it be revealed who created this policy, who pushed for its introduction, whether sufficient risk assessments and investor-protection measures were in place, and what reports and instructions were exchanged between Cheong Wa Dae and the financial authorities."
They continued, "If this level of damage to the public has occurred, it should not simply be attributed to market conditions or investor responsibility. We must thoroughly examine the reviews and procedures the government went through to introduce high-risk products," adding, "It has been reported that the son of Kim Yong-bum and Lee Chan-jin, Governor of the Financial Supervisory Service, is employed by Mirae Asset Global Investments Co., Ltd., and suspicions have also been raised that Kim met with the chairman of a particular financial company. Since he was part of the policy line involved in introducing single-stock leveraged ETFs, we must clearly determine whether there was any potential conflict of interest in the policy-making process."
They emphasized, "If there were improper interests or external influence in the policy implementation process, this is not merely a policy failure. It is 'ETF Gate,' involving the public's assets and confidence in the capital market," adding, "The parliamentary investigation must reveal what roles Cheong Wa Dae, the Office for Government Policy Coordination, the Financial Services Commission (FSC), and the Financial Supervisory Service played; why the product's introduction was rushed; how far the matter was reported to the President; and what instructions were given."
They added, "Kim Yong-bum must also appear as a witness before the parliamentary investigation and explain the various allegations directly to the public. Through the parliamentary investigation, we will clearly establish the policy-making process and where responsibility lies, and if serious violations or illegal acts are confirmed, we will also pursue a Special Prosecutor."

[email protected] Lee Hae-ram Reporter