Jung Jeom-sik, the floor leader of the People Power Party, argued on August 2 that a national investigation is necessary to determine accountability for the extreme volatility in the domestic stock market.
In a post on his Facebook, Jung warned that "our stock market is abnormal right now" and emphasized the need for a national investigation to clarify responsibility for the crisis in the KOSPI and KOSDAQ markets.
He pointed out that the decline in the KOSPI during July was greater than during the IMF (International Monetary Fund) financial crisis, stating, "Circuit breakers and sidecars, which we used to see once a year, have now become commonplace." He criticized the government for only exacerbating the situation, saying, "The recent actions of the government have only fueled overheating, increasing volatility and creating a casino-like environment in the stock market. The bigger issue is whether the stability of pension funds, such as the National Pension Service, has been adequately protected during this process."
Jung noted that if the instability in the stock market has led to a significant evaporation of the 'people's retirement funds' due to inappropriate government intervention and policy failures, then serious accountability must be established. He called for the National Assembly to swiftly identify the causes and responsibilities of this situation to ensure the healthy development of the stock market.
He proposed five areas for the national investigation: the introduction and impact of single-stock leveraged exchange-traded funds (ETFs), government actions that encouraged stock market overheating, government-induced uncertainties in the market, trends and appropriateness of domestic stock investments by pension funds like the National Pension Service, and the adequacy of roles played by financial supervisory authorities and economic policy departments.
Jung also mentioned that Han Byeong-do, the floor leader of the Democratic Party, acknowledged the seriousness of the situation and expressed a willingness to examine the introduction process of single-stock leveraged ETFs. He stated, "Therefore, the Democratic Party should have no reason to oppose the national investigation into the stock market crisis. I expect a prompt response."
The People Power Party continued to criticize the government on the same day regarding the recent fluctuations in the domestic stock market. Choi Bo-yun, the party's chief spokesperson, stated in a commentary that the Lee Jae-myung administration has privatized the National Pension Service, which is meant to safeguard the people's retirement funds, for political gain, thereby destroying the last safety net. He pointed out that the intervention of the Lee Jae-myung administration and the political sphere has completely undermined the National Pension Service's role as a "firefighter" in the stock market.
The National Pension Service has traditionally sold stocks to realize profits during market overheating and bought them back during downturns to mitigate shocks. However, it has recently raised the upper limit on domestic stock holdings and postponed the sale of excess amounts during the recent surge.
Choi Eun-seok, the party's senior spokesperson, emphasized that the introduction process and decision-making regarding single-stock leveraged products must be transparently disclosed to the public, including who initiated the process, who raised warning signals, who ignored those warnings, and who condoned the situation despite being aware of it.
In a post on his Facebook, Jung warned that "our stock market is abnormal right now" and emphasized the need for a national investigation to clarify responsibility for the crisis in the KOSPI and KOSDAQ markets.
He pointed out that the decline in the KOSPI during July was greater than during the IMF (International Monetary Fund) financial crisis, stating, "Circuit breakers and sidecars, which we used to see once a year, have now become commonplace." He criticized the government for only exacerbating the situation, saying, "The recent actions of the government have only fueled overheating, increasing volatility and creating a casino-like environment in the stock market. The bigger issue is whether the stability of pension funds, such as the National Pension Service, has been adequately protected during this process."
Jung noted that if the instability in the stock market has led to a significant evaporation of the 'people's retirement funds' due to inappropriate government intervention and policy failures, then serious accountability must be established. He called for the National Assembly to swiftly identify the causes and responsibilities of this situation to ensure the healthy development of the stock market.
He proposed five areas for the national investigation: the introduction and impact of single-stock leveraged exchange-traded funds (ETFs), government actions that encouraged stock market overheating, government-induced uncertainties in the market, trends and appropriateness of domestic stock investments by pension funds like the National Pension Service, and the adequacy of roles played by financial supervisory authorities and economic policy departments.
Jung also mentioned that Han Byeong-do, the floor leader of the Democratic Party, acknowledged the seriousness of the situation and expressed a willingness to examine the introduction process of single-stock leveraged ETFs. He stated, "Therefore, the Democratic Party should have no reason to oppose the national investigation into the stock market crisis. I expect a prompt response."
The People Power Party continued to criticize the government on the same day regarding the recent fluctuations in the domestic stock market. Choi Bo-yun, the party's chief spokesperson, stated in a commentary that the Lee Jae-myung administration has privatized the National Pension Service, which is meant to safeguard the people's retirement funds, for political gain, thereby destroying the last safety net. He pointed out that the intervention of the Lee Jae-myung administration and the political sphere has completely undermined the National Pension Service's role as a "firefighter" in the stock market.
The National Pension Service has traditionally sold stocks to realize profits during market overheating and bought them back during downturns to mitigate shocks. However, it has recently raised the upper limit on domestic stock holdings and postponed the sale of excess amounts during the recent surge.
Choi Eun-seok, the party's senior spokesperson, emphasized that the introduction process and decision-making regarding single-stock leveraged products must be transparently disclosed to the public, including who initiated the process, who raised warning signals, who ignored those warnings, and who condoned the situation despite being aware of it.
* This article has been translated by AI.
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