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 severely criticizing the leverage derivatives issue that caused sharp fluctuations in the Korean stock market, as well as President Lee Jae-myung's policy of "actively reducing debt," urging the government to come up with fundamental solutions as soon as possible. He pointed out that the KOSPI index has triggered program trading temporary restrictions 37 times this year, surpassing the record of 26 times during the 2008 global financial crisis.

Oh Se-hoon criticized, "The government, knowing full well the huge risks of individual stock leverage derivatives, still approved their listing, and stood by while retail investors' assets continued to evaporate, ultimately leading to the current situation."