Yoo Seung-min, former Future United Party lawmaker and economist, criticized the introduction of single-stock leveraged exchange-traded funds (ETFs) for Samsung Electronics and SK Hynix on May 19, attributing responsibility to the Blue House. Yoo stated on Facebook that "countless retail investors are experiencing hell in a stock speculation market that has become a squid game," calling for a National Assembly investigation into policy failures. His criticism followed Financial Supervisory Service (FSS) Governor Lee Chan-jin's April 20 press conference remarks expressing regret over the ETF introduction, amid a KOSPI index drop of 177.02 points (2.60%) to 6,643.58 on May 20.
Yoo Seung-min Criticizes Blue House Policy Director on Facebook
Yoo Seung-min posted on Facebook on May 19, responding to Lee Chan-jin's April 20 statement that he regretted the single-stock leveraged ETF introduction. Yoo wrote, "As retail investors cry out in hell, the FSS governor's irresponsible and out-of-body remarks—saying belatedly 'I should have laid down and blocked it, I reflect and regret'—leave me speechless." He added, "In reality, the FSS governor is not the main culprit but merely a subordinate, so he seems aggrieved," stating that "it has become publicly known that the target 'that should have been blocked even by laying down' was Blue House Policy Director (Kim Yong-beom)."
Lee Chan-jin Expressed Regret at April 20 Press Conference
FSS Governor Lee Chan-jin stated at a press conference on April 20 that he regretted the introduction of single-stock leveraged ETFs. Yoo referenced this statement in his Facebook post, criticizing the timing and tone of Lee's remarks as retail investors faced losses from market volatility.
Yoo Proposes Gradual Phase-Out of Leveraged ETFs
Yoo stated that withdrawing single-stock leveraged ETFs is not feasible. He explained, "Investor losses are already difficult to recover, and products currently trading cannot be delisted, so there is no one-shot solution." He added, "It seems the only option is to achieve a soft landing in the market and proceed with a 'fade-out' (gradual phasing out)."
Yoo Calls for Investigation into National Pension Fund Management
Yoo demanded accountability for policy failures, stating, "We must find out who introduced these high-risk leveraged products—which cannot even be called ETFs—for what purpose, and created this situation. Responsibility for that policy failure must be held." He also called for a National Assembly investigation into alleged misuse of the National Pension Fund, claiming, "There are suspicions that the government mobilized pension funds for artificial stock price support and exchange rate defense, undermining the fund's asset management principles." Yoo argued, "Foreign investors who adhered to rebalancing principles realized enormous profits (in the Korean stock market), while the National Pension Fund, which violated its principles, missed opportunities. We were only used by foreigners."
FAQ
What did Yoo Seung-min criticize on May 19?
Yoo Seung-min criticized the introduction of single-stock leveraged ETFs for Samsung Electronics and SK Hynix on May 19 via Facebook, attributing responsibility to Blue House Policy Director Kim Yong-beom and calling for a National Assembly investigation.
What did Lee Chan-jin say at the April 20 press conference?
FSS Governor Lee Chan-jin expressed regret at an April 20 press conference about the introduction of single-stock leveraged ETFs, stating he should have blocked the policy.
What solution did Yoo Seung-min propose for the leveraged ETF issue?
Yoo stated on May 19 that withdrawing the ETFs is not feasible and proposed a gradual "fade-out" approach, allowing the products to phase out while achieving a soft landing in the market.
