Opposition Submits Parliamentary Investigation Request on ETFs...Kim Yong-beom, Lee Chan-jin, Lee Eo-gwon Also Reported to Corruption Office

Lim Ija: "Firing Kim Yong-beom is a hasty attempt to cover up shady connections"

The People Power Party submitted a request for a parliamentary investigation regarding single-stock leverage Exchange-Traded Funds (ETFs) to the National Assembly on September 4, 2026. The party has also filed allegations with the Corruption Investigation Office for High-ranking Officials against former Presidential Policy Chief Kim Yongbeom, who led the launch of the ETF products, as well as the heads of relevant financial authorities.

On the 4th, Seo Il-jun, a member of the opposition party and the ranking member of the National Assembly's Political Affairs Committee, along with the party's floor leadership, submitted a "Request for a Government Investigation to Determine Responsibility for Market Distortion and Individual Investor Losses Caused by Specific Single-Stock Leverage ETF Products and to Prepare Measures to Prevent Recurrence" to the National Assembly’s Legislative Affairs Division in Yeouido, Seoul. From left: Mi-ae Kim, Il-jun Seo, Seung-su Kim. Photo by Yonhap News Agency

Seo Iljun, the opposition secretary of the National Assembly’s Political Affairs Committee from the People Power Party, along with members of the party’s floor leadership, visited the Assembly’s Legislative Affairs Division that day and officially submitted, as the party’s position, a “Request for a Government Investigation to Determine Responsibility for Market Distortion and Individual Investor Losses Caused by Specific Single-Stock Leverage ETF Products and to Prepare Measures to Prevent Recurrence.”

After submitting the investigation request, Assemblyman Seo told reporters, “It is absolutely necessary for people’s livelihoods to thoroughly investigate how single-stock leverage ETFs were introduced, whether the problems were analyzed, and to uncover who is responsible. Since this issue affects people’s livelihoods, we expect the Democratic Party of Korea will also participate in the parliamentary investigation.”

The People Power Party is raising suspicions that former Policy Chief Kim Yongbeom, who promoted the introduction of ETF products, and the fact that the child of Lee Chanjin, the Chief of the Financial Supervisory Service, works at Mirae Asset Global Investments, which benefited from ETF management fees, create a conflict of interest. At a party leadership meeting, Policy Committee Chairwoman Lim Eija said, “Suspicions are mounting that firing former Policy Chief Kim is a hasty move to cover up the corrupt connections between policy authorities and the financial industry.”

Within the People Power Party, there are calls not only for a parliamentary investigation but also for the introduction of a special prosecutor regarding the matter. Song Eonseok, a member of the Political Affairs Committee, stated on his social media that day, “The National Assembly must thoroughly examine every aspect, from policy decision-making to product launch, through this investigation. If the investigation cannot uncover the truth, then a special prosecutor must be appointed as well.”

People Power Party lawmakers Na Kyungwon, Kim Taegyu, and Yoon Yonggeun also held a press conference at the National Assembly’s press room, announcing plans to file criminal complaints with the Corruption Investigation Office for High-ranking Officials not only against former Policy Chief Kim and Financial Supervisory Service Chief Lee, but also Finance Commission Chairman Lee Eokwon. The criminal complaints, citing major crimes including fraud under the Act on the Aggravated Punishment, etc. of Specific Economic Crimes, abuse of authority, dereliction of duty, and conflict of interest, are being filed.

The three lawmakers explained their rationale for the criminal complaints by saying, “Even as the National Assembly is preparing for an investigation and discussing a special prosecutor, there is a high risk that crucial evidence such as secretly exchanged mobile phone records, closed-door meeting minutes between the Blue House and the financial authorities, directive documents, and transcripts could be destroyed.” They also urged, “Following Kim Yongbeom, Lee Chanjin and Lee Eokwon – all three of those responsible for the ETF national scam – must resign immediately.”

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