South Korean chief of staff Kim Yong-beom faces criminal complaint over leveraged ETFs

Presidential chief of staff for policy Kim Yong-beom was accused of abusing his authority after a criminal complaint was filed by former Seoul Metropolitan Council member Lee Jong-bae of the People Power Party. The complaint alleges that Kim pressured financial regulators to approve single‑stock leveraged exchange‑traded funds (ETFs) tied to Samsung Electronics and SK hynix, despite the products’ high risk. Introduced on May 27, the leveraged ETFs aim to deliver twice the daily return of the underlying stocks, magnifying gains and losses and contributing to heightened volatility in South Korea’s stock market.

Opposition lawmakers have called for a parliamentary investigation and demanded greater transparency from the Financial Services Commission. In response, President Lee Jae Myung convened a closed‑door meeting with senior aides to review market conditions, and regulators have begun tightening rules to curb speculative trading.