People Power Party: "Was the Leveraged ETF Scripted from January? The Main Figures Behind It Must Be Identified"

[Financial News] The People Power Party continued its offensive on January 18, calling for an investigation into whether Kim Yong-beom, former policy chief of the Presidential Office, directed or intervened in the process of introducing single-stock leveraged ETFs.
In a commentary issued that day, Choi Eun-seok, chief floor spokesperson for the People Power Party, said, "The investigation into the single-stock leveraged ETF disaster is now getting underway in earnest," and claimed, "The more they try to hide, the larger the suspicions become, and the pieces of the puzzle are gradually falling into place."
Choi said indications had emerged that the Korea Financial Investment Association proposed introducing single-stock leveraged ETFs during discussions between the Financial Services Commission (FSC) and industry representatives on January 6.
He asked, "Why was it the Korea Financial Investment Association, of all entities?" and said, "It must be determined whether the Korea Financial Investment Association stepped forward on its own initiative or was assigned a specific role at the direction or request of Kim Yong-beom's side at Cheong Wa Dae."
The People Power Party specifically argued that the connection between the industry discussions on January 6 and the closed-door meeting Kim, the former policy chief, held with the heads of securities firms and asset management companies on January 13 must be established.
Choi emphasized, "The suspicion is that the idea was floated during the industry discussions on January 6, and that the policy chief's direct involvement on January 13 opened the way for the launch of single-stock leveraged ETFs. It must be determined whether the script had already been written as of January 6 and whether the Cheong Wa Dae meeting on January 13 was part of the process of putting it into action."
The People Power Party has submitted a request for a parliamentary investigation into the process of introducing single-stock leveraged ETFs and who should be held responsible. The party maintains that a parliamentary audit and investigation should establish how the policy was pursued and who issued the instructions. If signs of unlawful or improper intervention are confirmed, the matter should proceed to a special prosecutor's investigation, it said.
Addressing Kim, the former policy chief, Choi urged him, "Do not cowardly hide behind others. If you have nothing to hide, appear before the parliamentary audit and fully disclose to the public what was discussed on January 6, what was discussed at the Cheong Wa Dae meeting on January 13, and what instructions you gave."

[email protected] Kim Kyung-min Reporter