Svmuu News: According to Yonhap News Agency, Seoul Mayor Oh Se-hoon issued a statement strongly criticizing the issue of leveraged derivatives—which have caused severe volatility in the South Korean stock market—as well as President Lee Jae-myung’s “proactive debt relief” policy, and urged the government to introduce fundamental measures as soon as possible. He pointed out that the KOSPI index has triggered the temporary algorithmic trading restriction mechanism 37 times so far this year, already surpassing the record of 26 times set during the entire 2008 global financial crisis.
Oh Se-hoon criticized, “The government approved the listing of leveraged derivatives for individual stocks despite being fully aware of the enormous risks involved, and stood idly by while retail investors’ assets continued to evaporate, ultimately leading to today’s situation.”