South Korean Financial Services Commission Chairman Lee Bok-hyun and Presidential Chief of Staff for Policy Kim Yong-beom have been criminally reported, accused of dereliction of duty and abuse of power for the hasty listing of a single-stock leveraged ETF.
According to the Korea JoongAng Daily, Lee Jong-bae, a former Seoul city councilor from the People Power Party, filed a complaint with the Supreme Prosecutors' Office via the National Sinmungo on August 3, accusing Kim Yong-beom of abuse of power. The complaint alleges that Kim publicly pressured regulatory bodies and forcefully pushed for the listing of a 2x leveraged ETF on single stocks. On August 6, Lee Jong-bae further reported Lee Eok-won, accusing him of dereliction of duty and abuse of power obstructing the exercise of rights. The complainant stated that the product in question was hastily launched around May 27, just before the elections, and allegedly skipped necessary risk review procedures such as stress tests, ultimately leading to significant losses for many investors.
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