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South Korea's Ruling Party Demands Probe and Special Counsel into Stock Market Turmoil
Finance · Investment Banks/Brokers · yonhap_finance · 2026-08-05
The People Power Party is calling for a parliamentary investigation and a special counsel probe into the recent stock market crash, citing concerns over ETF policies.
What Happened
Call for Investigation: The People Power Party's floor leader, Jung Jeom-sik, has formally requested a parliamentary investigation to determine the causes and accountability behind the recent stock market volatility. He argued that current committee-level inquiries are insufficient to hold key policymakers accountable for the market's loss of trust.
ETF Policy Controversy: Representative Jang Dong-hyuk criticized the introduction of single-stock leveraged ETFs, labeling them a primary driver of retail investor losses. He questioned why the policy was pushed forward despite expert opposition, suggesting that the decision-making process warrants a deeper look into potential corruption.
Special Counsel Push: Beyond a standard investigation, Jang is advocating for a special counsel to uncover potential illicit ties and lobbying efforts. He highlighted concerns regarding conflicts of interest involving high-ranking officials and their family members employed at major financial institutions involved in the ETF rollout.
Pension Fund Oversight: The party also emphasized the need to audit the management of the National Pension Service during the market downturn to protect citizens' retirement assets. They warned that the ruling party's refusal to cooperate with these investigations would be perceived as an admission of policy failure.