Opposition Intensifies Blame on Government for KOSPI Drop Below 5700

The People Power Party is intensifying its blame on the government and ruling party following a sharp decline in the KOSPI index, which fell from the 7000 level earlier this month to below 5700 today. The party plans to expand its criticism, which began during the National Assembly's audit, to include allegations of hasty implementation of single-stock leverage exchange-traded funds (ETFs) and the decision to delay the National Pension's rebalancing, ultimately pushing for a special investigation into the 'Lee administration's stock market collapse.'

During the National Assembly audit, the People Power Party continued to press for the submission of documents and the selection of witnesses to clarify the allegations surrounding the introduction of single-stock leverage ETFs. Representative Kim Min-jeon emphasized during a meeting of the National Assembly's Operations Committee, "Isn't it essential to examine who made the decision that caused over 50 trillion won in losses to the public?"

Representative Song Eon-seok also raised the issue of government accountability during the National Assembly's Political Affairs Committee audit, citing investor losses. He stated, "People tried to invest in stocks after the real estate market faltered, but with the introduction of single-stock leverage ETFs, the public suffered losses of 50 trillion won. Yet, no government official has taken responsibility for this situation."

The allegations regarding the hasty implementation of single-stock leverage ETFs gained traction after Financial Supervisory Service Chairman Lee Chan-jin acknowledged on the 19th during the Political Affairs Committee audit that the review process was expedited to meet the listing schedule.

The party leadership is also ramping up its attacks on the government, linking the decline in the stock market to investor losses. Representative Jang Dong-hyuk criticized President Lee Jae-myung on his Facebook page for expressing concern over the rapid rise in the stock market, stating, "This means he only worried without taking any measures. It is the height of irresponsibility." He also questioned the rationale behind the decision to use the National Pension to prop up the stock market.

The People Power Party intends to continue its offensive by linking the National Assembly audit to a special investigation. Floor Leader Jeong Jeom-sik announced during a meeting on the National Assembly audit strategy that the scope of the previously adopted party position for a special investigation into single-stock leverage ETFs would include allegations related to the National Pension's decision to delay rebalancing, pushing for a 'special investigation into the Lee administration's stock market collapse.'

Policy Committee Chair Lim I-ja emphasized, "President Lee is evading responsibility by saying, 'Someone must have made the decision,' and the minutes of the National Pension Fund's management meetings are set to be concealed for four years. We cannot leave the accountability for the trillions of won in losses and the 182 trillion won squandered to remain as 'someone.'"