Lee Chan-jin, amid calls to hold him accountable for single-stock leveraged ETFs: “Whether I remain in my post is for the appointing authority to decide”

[Financial News] Lee Chan-jin, governor of the Financial Supervisory Service (FSS), said in response to a question about whether he intended to resign to take responsibility for the introduction of single-stock leveraged exchange-traded funds (ETFs), “I think that is for the appointing authority to decide.”
At the National Assembly’s Political Affairs Committee audit of the FSS on the 19th, Rep. Shin Dong-wook of the People Power Party repeatedly asked Lee whether he had no intention of resigning, pressing him on his responsibility for the circumstances surrounding the introduction of single-stock leveraged ETFs and investor losses. Lee replied, “I don’t think it’s appropriate to comment on that now,” and gave the same answer.
Rep. Shin criticized FSS officials who attended meetings where the introduction was discussed for saying they could not recall the details, and noted that no related briefing had been given to the governor. He pressed the agency on whether internal reporting and risk assessments had been properly carried out during the important policy decision-making process.
Rep. Shin pressed him, asking, “You held several meetings about such an important issue, and there was no one to report it to you?” and “How are you going to take responsibility now?” He then brought up Lee’s earlier remark to the effect that he should have stopped the launch of single-stock leveraged ETFs, even if he had to lie down to block it, and asked, “Do you have no intention of resigning?”
Lee did not respond immediately, then said it was not appropriate to discuss his own future in office at this point and that the matter was for the appointing authority to decide.
In an earlier question from People Power Party Rep. Song Eon-seok, the issue was also whether the FSS had sufficiently assessed the product’s potential impact on the market before its introduction. Citing research that single-stock leveraged ETFs could increase the volatility of the underlying stocks, Song asked whether the FSS had ever raised such concerns in advance.
Lee said, “I did not directly raise the issue,” and added, “I am sorry.” Asked whether he had ever formally expressed opposition to the introduction, he also said he had not done so directly.
By contrast, an FSS vice governor said that the agency had repeatedly explained in consultations with various institutions that the product carried high investment risk, and had also informed the market through a press release before its launch.
Song called for documents showing when the meetings said to have emphasized the risks were held and who attended. In further remarks in the afternoon, he said he would obtain records of the relevant meetings and attendees and use them in follow-up questions.
[email protected] Jeong-hwa Lee Reporter