Kim Yong-beom: Quick Implementation of Leverage Measures, Yellow Envelope Law Can Be Adjusted Later

Kim Yong-beom, head of the policy office at Cheong Wa Dae, stated on July 22 that President Lee Jae-myung's directive to enhance the single-item leverage ETF (exchange-traded fund) system was not a call for new measures. Instead, he interpreted it as a request to expedite the implementation of previously announced policies.

During a briefing at Cheong Wa Dae, Kim responded to related questions by saying, "The measures announced previously include significant changes, so swift implementation is a priority." He added, "We should assess their effects and consider necessary adjustments, but since the impact has not yet been realized, discussing additional measures would be premature."

However, in a prior broadcast interview, he mentioned the need to address the burden of selling to align the discrepancy rate (the difference between the ETF's net asset value and its actual market price). He suggested that there might be room for flexible interpretation of the discrepancy rate and dialogue between authorities and the industry.

Regarding President Lee's comments the previous day about the Yellow Envelope Law and concerns over the excessive expansion of labor disputes, Kim dismissed the notion that the president was expressing worry about the law. He clarified, "I don't think the president was concerned about the Yellow Envelope Law. He was suggesting that if clear guidelines are not established, it could lead to debates attributing issues to the law. It would be beneficial for the Ministry of Employment and Labor to clarify its position through guidelines."

Kim described the impact of the Yellow Envelope Law as subjective, stating, "Whether it is seen positively or negatively is a matter of personal judgment, but at least there has not been a situation where the primary contractor is overwhelmed by fragmentation of negotiation units." He continued, "After one to two years, once the Yellow Envelope Law is established, both its benefits and areas for improvement will become apparent, and we can evaluate and make adjustments accordingly."