Seoul Mayor Criticizes South Korean Government for Allowing Leverage Products to Impact Stock Market

Odaily Planet Daily News According to Yonhap News, Seoul Mayor Oh Se-hoon issued a statement strongly criticizing the leveraged derivatives problem that caused severe volatility in the South Korean stock market, as well as President Lee Jae-myung's "aggressive debt relief" policy, urging the government to come up with fundamental countermeasures as soon as possible. He pointed out that the KOSPI index has triggered the program trading temporary suspension mechanism 37 times this year, surpassing the record of 26 times during the 2008 global financial crisis.

Oh Se-hoon criticized, "The government was well aware of the significant risks of single-stock leveraged derivative products, yet still approved their listing. It stood by while retail investors' assets continued to evaporate, ultimately leading to the current situation."