Seoul: The ruling Democratic Party (DP) has pledged to collaborate closely with the government to mitigate uncertainty in the domestic stock market, as volatility concerns rise. Acting DP leader Han Byung-do emphasized during the party's supreme council meeting that the current market situation is being taken seriously.
According to Yonhap News Agency, the government recently held an emergency meeting with relevant agencies to assess the market conditions. The meeting highlighted that investments focused on single-stock leveraged exchange-traded funds (ETFs) are contributing to increased market volatility. The DP plans to review whether proper measures were implemented to protect investors when these financial products were initially introduced.
The emergence of concerns centers around single-stock leveraged ETFs, particularly those related to chipmakers, which have been linked to significant market fluctuations, sharp sell-offs, and retail investor losses. Rep. Han criticized the main opposition People Power Party for allegedly exploiting investor anxiety for political gain, suggesting that such actions could erode market confidence and result in substantial investor losses.
"We need to precisely assess what the market needs and come up with realistic measures," Han stated, highlighting the importance of targeted solutions.
Additionally, Rep. Kang Deuk-gu has proposed the formation of a special task force. This task force would include members from the DP's policy committee, financial authorities, and experts to discuss strategies to enhance investor protection.