Opposition People Power Party Pushes for ‘Leveraged ETF Parliamentary Investigation and Special Counsel Probe,’ Targets Kim Seung-won and Yong Hye-in

[Financial News] The People Power Party is accelerating efforts to launch a parliamentary investigation and pass a special counsel law concerning single-stock leveraged Exchange Traded Funds (ETFs). It is holding the Financial Services Commission (FSC), the Financial Supervisory Service, and even President Lee Jae Myung responsible, calling the resignation of former Cheong Wa Dae policy chief Kim Yong-beom an attempt at “cutting off the tail.”
People Power Party leader Jang Dong-hyuk held a supreme council meeting at the National Assembly of the Republic of Korea on the 3rd and claimed, “The losses suffered by the public from single-stock leveraged ETFs amount to 54 trillion won,” adding, “The ETF gate under the Lee Jae Myung administration must be investigated by a special counsel.”
The party is highlighting allegations that former policy chief Kim Yong-beom received lobbying from Park Hyeon-Joo, chairman of Mirae Asset Financial Group. The People Power Party says it is receiving tips related to the allegations. Jang stated, “Kim Yong-beom’s son works at Mirae Asset Financial Group alongside the son of Lee Chan-jin, Governor of the Financial Supervisory Service,” adding, “He resigned because of various allegations, and rumors are even circulating that he will flee overseas.” Mirae Asset Financial Group, however, said the claims are entirely untrue.
People Power Party lawmakers on the Political Affairs Committee plan to submit a request for a parliamentary investigation. Their aim is to determine why leveraged ETFs were introduced and where responsibility lies. They also plan to introduce a special counsel bill if signs of illegality emerge during the investigation.
The Democratic Party of Korea does not agree that a parliamentary investigation is necessary. Democratic Party lawmaker Oh Gi-hyoung appeared on Munhwa Broadcasting Corporation (MBC)’s “Kim Jong-bae’s Focus” on the 2nd and said, “There needs to be reflection and change regarding the debates surrounding single-stock leveraged ETFs,” but added, “I do not believe a parliamentary investigation is necessary, and this is not a matter for a special counsel. It should be discussed during the parliamentary audit and interpellation of the government.”
The People Power Party is also intensifying its attacks over the Lee Jae Myung administration’s sweeping reshuffle of six ministries. In particular, it has designated Ministry of Justice ministerial nominee Kim Seung-won as its top target for rejection and Ministry of Gender Equality and Family ministerial nominee Yong Hye-in as its second-priority target. The strategy is to put allegations that Kim solicited favors involving a new drug and that Yong was involved with an “underground organization” at the center of the campaign.
Jang claimed, “Kim copied and pasted a broker’s text message and sent it to the head of the Ministry of Food and Drug Safety, then copied and pasted the ministry chief’s message and sent it back to the broker. Once the deal went through, Kim personally sent even the bank account number,” calling it “a clear bribery offense.” Regarding Yong, he emphasized, “Allegations have emerged that she was involved in an underground organization affiliated with the Workers’ Party of Korea (WPK). It is an organization that claims to be the successor to the Communist Party of Korea and aims for a communist revolution,” adding, “The organization reportedly normalized gender discrimination internally while engaging in Flaming Feminist Action activities externally. The organization’s leader is the spouse of nominee Yong Hye-in.”

[email protected] Lee Hae-ram Reporter