People Power Party Weighs Summoning Mirae Asset Chairman in ETF Probe
Summary
- The People Power Party said it will submit a request on Sept. 3 for a parliamentary investigation into allegations surrounding the introduction of single-stock leveraged ETFs tied to Samsung Electronics and SK Hynix.
- The People Power Party said it would seek the appearance of Mirae Asset Financial Group Chairman Park Hyeon-joo if the probe goes ahead and examine whether there was collusion with firms including Mirae Asset Global Investments during the rollout.
- Rep. Seo Il-jun said estimates show retail investor losses from single-stock leveraged ETF investments have reached about $39 billion and that the party would also pursue an independent counsel investigation if the parliamentary probe confirms legal violations.
Forecast Trend Report by Period
PPP to submit request for parliamentary probe on Sept. 3
South Korea’s People Power Party, which is seeking a parliamentary investigation into single-stock leveraged exchange-traded funds, plans to ask Mirae Asset Financial Group Chairman Park Hyeon-joo to testify if the probe goes ahead.
The party plans to submit a request to the National Assembly on Sept. 3 for a parliamentary investigation into allegations surrounding the introduction of single-stock leveraged ETFs tied to Samsung Electronics and SK Hynix. An official involved with the National Assembly’s Political Affairs Committee said Park would be asked to appear if the investigation proceeds.
The People Power Party alleges that Kim Yong-beom, a former presidential policy chief, met Park at a hotel in Seoul while the introduction of the ETFs was being pushed. It says the probe should examine whether there was collusion with firms including Mirae Asset Global Investments in the process.
Rep. Seo Il-jun, the opposition floor member on the Political Affairs Committee, told a press conference that estimated losses suffered by retail investors from single-stock leveraged ETF investments had reached about 54 trillion won ($39 billion). He said the investigation should clearly determine how the policy was made and who was responsible. If serious legal violations are confirmed, the party will also seek an independent counsel investigation.
Seo said Kim and the son of Lee Chan-jin, head of the Financial Supervisory Service, were known to be employed by Mirae Asset Global Investments. He also cited allegations that Kim met with the chairman of a specific financial company. He said it must be clearly established whether there was any conflict of interest in the policymaking process.
A parliamentary investigation would require agreement from the Democratic Party. A People Power Party official said the party would continue pressing the issue, including by demanding an independent counsel investigation, if the parliamentary probe does not move forward.
Esther Lee, Hankyung.com reporter esther@hankyung.com
