President Lee Jae-myung emphasized the need for prompt and thorough measures regarding single-stock leverage exchange-traded funds (ETFs) during a Cabinet meeting on July 21.
During the meeting held at the Blue House, President Lee stated, "From the perspective of stock market participants, the inefficiencies or problems in policy are much greater." He added, "It seems like it is taking too long."
When Financial Services Commission Chairman Lee Ok-keun mentioned the proposed measures announced on July 16, which include increasing the basic deposit and trading units, President Lee responded, "There are concerns that this alone may not be sufficient."
Regarding the government's plan to implement these measures starting August 5, President Lee remarked, "It seems that the implementation is not immediate or early, but rather delayed. Market participants expect that such issues should have been anticipated in advance."
He continued, "While it is difficult for policy authorities to achieve perfection, they should act decisively and swiftly in necessary responses." He noted that the timing of the measures, introduced during a rapid market surge, may have created the illusion that they were the cause of significant issues.
In response to a report from Policy Chief Kim Yong-beom about the reduced outflow of foreign capital, President Lee stated, "That reflects the effectiveness of government policy, but stock market participants believe that this has increased volatility and losses, which is why creating supplementary measures is the government's responsibility." He urged, "It is a challenging situation, but let’s navigate it wisely."
* This article has been translated by AI.
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