South Korean Investors Start Holding Accountable: Presidential Office Policy Chief Faces Criminal Lawsuit for Alleged Abuse of Power to Promote Leveraged ETF Listing

BlockBeats News, August 3rd, according to South Korea's Chosun Ilbo, Kim Yong-beom, the Chief of Staff of the Presidential Office, is accused of pushing for the listing of a leveraged ETF linked to a single semiconductor stock. He has been charged with abuse of power, coercion, and obstruction of business, and a related criminal complaint has been formally filed. These single-stock leveraged ETFs are believed to have exacerbated market volatility and led to investors suffering billions of dollars in losses.

Lee Jong-bae, a conservative former Seoul Metropolitan Council member supported by the opposition People Power Party, stated that he submitted a criminal lawsuit against Kim Yong-beom to the Supreme Prosecutors' Office on Monday through the government's online petition system.

Lee Jong-bae believes that Kim Yong-beom had actually instructed the financial regulatory authorities to consider launching leveraged ETF products linked to a single chip stock. Lee Jong-bae also claimed that the Financial Services Commission (FSC) has been internally reviewing a plan since January, aiming to establish the necessary regulatory framework and system in the second quarter and then launch these products in the latter half of the year. Lee Jong-bae stated, "Without Kim Yong-beom's instructions, the financial regulatory authorities would not have hastily launched the leveraged ETFs linked to a single semiconductor stock on the eve of the election, disregarding serious market risk warnings."