Jang Donghyuk Demands Accountability for Leveraged ETF Policy Architect... Calls for Kim Yongbum’s Dismissal

Remarks at the Supreme Council Meeting on August 10

Jang Donghyuk, leader of the People Power Party, demanded the launch of a parliamentary investigation and a special prosecutor regarding the introduction of single-stock leveraged exchange-traded funds (ETFs) on August 10. He insisted on thoroughly revealing, through a special investigation, who designed the policy and who ultimately gave the orders. Jang also argued that Kim Yongbum, policy chief at the Presidential Office, should be dismissed and held accountable for the introduction of the policy.

At the Supreme Council meeting held at the National Assembly that day, Jang said, "Our young people are losing their dreams and assets in the gambling den created by the administration," adding, "President Lee Jaemyung can never be free from this responsibility."

He further stated, "Losses for retail investors in the stock market have exceeded 200 trillion won, and returns for investors in the Samsung Electronics and SK hynix leveraged ETFs have dropped by more than 60 percent."

Jang Donghyuk, leader of the People Power Party, is speaking at the Supreme Council meeting held at the National Assembly on the 10th. Photo by Yonhap News Agency

Citing a Bloomberg report, Jang noted, "The SK hynix leveraged product has plummeted by as much as 84 percent from its peak, and as many as 360,000 securities accounts have been forcibly liquidated." He highlighted that "65 percent of these accounts belonged to people aged 35 or younger, pointing out that the government encouraged inexperienced investors to invest."

Jang stressed the need to identify who was ultimately responsible for introducing the single-stock leveraged ETFs. "Recently, at the Democratic Party's national convention, Prime Minister Kim Minseok said he did not give any orders regarding leveraged ETFs. If the policy went through the Cabinet and yet the prime minister did not order it, then the only person in the Presidential Office who could have directed this policy is the president himself," Jang said.

He continued, "A parliamentary investigation and a special prosecutor regarding the leveraged ETFs are necessary," and declared, "The immediate dismissal of Kim Yongbum, policy chief at the Presidential Office, is the right answer."

Jang also criticized the government's recent decision to reconsider its plan to reduce tax benefits for Individual Savings Accounts (ISA). "The government even tried to reduce ISA benefits, and now the president is trying to shift the blame by asking, like it's someone else's problem, 'Why did they do that?' But that's not a question for the government; it's something the people should ask the president," he said.

Floor leader Jeong Jeomsik also criticized the government, saying, "The administration has managed state affairs as if it were running a stock tip chatroom, then introduced single-stock leveraged ETFs that melted down the stock accounts of young people. In order to build up the KOSPI index as a modern-day Tower of Babel, they have taken advantage of the young." He went on to demand, "Accountability must begin with the policy makers who introduced the single-stock leveraged ETFs."

This content was produced with the assistance of AI translation services.