The Financial Services Commission asserted that a non-public meeting held at Cheong Wa Dae on January 13 of this year, prior to the launch of single-stock leveraged ETFs (Exchange-Traded Funds), was "a forum to discuss ways to enhance the attractiveness of our country's capital market," and denied that it was a 'closed-door meeting' solely for the introduction of ETFs. The commission claimed that the gathering was an idea session aimed at devising various policies, including productive finance, ISAs (Integrated Savings Accounts), and RIAs (Repatriation Investment Accounts).
During the Financial Services Commission's national audit by the Finance Committee on the 8th at the Seoul Yeouido National Assembly, Lee Eui-won, Chairman of the Financial Services Commission, stated regarding the topic of the non-public Cheong Wa Dae meeting, "It was a meeting to seek ideas on how to redirect investment demand flowing overseas back to the domestic market and how to enhance the attractiveness of the capital market." He added, "At the time, the won-dollar exchange rate issue was serious, so measures such as tax reductions on transfer taxes for those who bring their overseas investments back to the country through RIA accounts were discussed, and this was swiftly introduced on March 20."
The ruling party emphasized that the introduction of the product was not a hasty measure ahead of local elections. Park Sang-hyuk, Secretary-General of the Democratic Party of Korea's Finance Committee, stated, "I saw reports that former Financial Supervisory Service Chairman Lee Bok-hyun also considered single-stock leveraged ETFs during his tenure. It seems there were discussions about the necessity of such products under previous administrations as well."
[Name] said, "Previous administrations also held many roundtables with the industry," and added, "During the Park Geun-hye administration, there was a controversy over who attended and who did not attend what was called the Seobyeongwan Meeting."
[Name], Secretary-General of the People Power Party, pressed for an explanation of the background behind the Cheong Wa Dae meeting. He asked whether the practical working-level meeting between the Korea Financial Investment Association and financial authorities on January 6 was a preliminary preparation for the Cheong Wa Dae meeting, and inquired if it was true that the financial investment industry did not directly request single-stock leveraged ETFs at the January 13 meeting.
[Name] revealed that a non-public meeting was held at Cheong Wa Dae on January 13, and that Kwon Dae-young, then Vice Chairman of the Financial Services Commission, attended under the chairmanship of [Name]. [Name] stated, "I understand it was a meeting to seek ideas for revitalizing the capital market, rather than one to decide in favor of or against something."
Regarding the entity that raised the need to resolve asymmetries in domestic ETF product regulations, [Name] said, "It referred collectively to the market, media, and experts."
[Name] pointed out, "It is truly pitiful to see [Name] carrying this heavy burden alone," adding, "We are on a path to find out who led this. It would not be an issue if it ended with today's national audit, but it will continue."
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