Seongkwon Lee: "Stock Market in Panic... Securities Market Stabilization Fund Must Be Deployed"
"Calls for Dismissal of Gi Yongbeom and Financial Authorities' Chiefs"
Seongkwon Lee, member of the People Power Party, stated, “To address the issue of single-stock leveraged Exchange-Traded Funds (ETFs), the government should first deploy the Securities Market Stabilization Fund, which experts and investors are urgently recommending as an emergency remedy.”
On July 30, through his social media account, Assemblyman Lee made a proposal to the Lee Jaemyung administration, outlining these countermeasures. He said, “An analysis shows that losses suffered by the public, who invested in government-promoted (single-stock leveraged ETF) products, have reached 56 trillion won. The stock market is in a state of panic, and the daily lives of domestic retail investors are in a state of collapse,” emphasizing the urgency for emergency measures and highlighting the importance of resolving these issues.
Assemblyman Lee suggested that activating the Securities Market Stabilization Fund is necessary to restore confidence and stabilize the domestic stock market. He noted, "During the COVID-19 pandemic in 2020, the five major financial holding companies created a fund worth 10.7 trillion won, and in October 2022, a plan was established to operate a 10 trillion won fund as well." He also explained, "Back during the administration of Roh Taewoo, the creation of a stock market stabilization fund helped to prevent a market crash." Assemblyman Lee further urged the swift implementation of market stabilization measures, such as allowing pension funds increased flexibility in their allocation to domestic stocks.
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He emphasized, "Protecting the lives, safety, and property of the people is the fundamental purpose of government, and that responsibility and resolution for the government’s policy failures are essential duties that must come first." He added, "Ahead of rapid emergency measures, the dismissal of those responsible for the leveraged ETF crisis—such as Gi Yongbeom, Chief Policy Officer at the Blue House, Oh Eogwon, Chairman of the Financial Services Commission, and Lee Chanjin, Governor of the Financial Supervisory Service—must be the starting point for resolving these problems."
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