South Korea's opposition parties are demanding the dismissal of Blue House policy chief Kim Yong-beom following extreme volatility in the KOSPI market [1].
The political pressure stems from the introduction of single-stock leveraged ETFs, which critics argue have turned the national stock market into a high-risk gambling environment. If the government fails to address these structural instabilities, the opposition warns the market could face systemic collapse [1, 2].
People Power Party floor leader Jeong Jeom-sik led the offensive against Kim, and said that the current administration's approach to the market is reckless [1]. Jeong said the government has essentially operated a stock leading room for the public, referring to the way policies have encouraged speculative trading [1].
Market data highlights the severity of the instability. There have been 20 instances of the sell-side circuit breaker, known as the "sidecar," being triggered this year alone [1]. This mechanism is designed to pause trading during rapid price drops to prevent a total market crash [1].
Opponents argue that the administration mistakenly viewed temporary stock price increases as a political achievement rather than a symptom of volatility [1]. They maintain that the policy office failed to implement necessary safeguards to protect retail investors from the amplified risks associated with leveraged products [1, 2].
The People Power Party and other opposition members are now calling for immediate corrective measures, and the removal of Kim from his post, to signal a shift in economic management [1, 2].
“The government has essentially operated a stock leading room for the public.”
The clash reflects a deeper conflict over South Korea's financial deregulation. By targeting the policy chief, the opposition is attempting to link market instability directly to the administration's leadership, framing the use of complex financial instruments like leveraged ETFs as a failure of governance rather than a market fluctuation.
