Korean Presidential Official Faces Criminal Charges for Alleged Leveraged ETF Push

Kim Yong-beom accused of abusing authority to force single-stock leveraged ETF listings, sparking billions in losses and a formal criminal complaint filed by opposition councilor.

Woofun AI reports that Kim Yong-beom, chief of the policy office at the South Korean presidential office, faces criminal charges for alleged abuse of authority, coercion, and obstruction of business. The accusations stem from claims that he pressured regulators to list leveraged ETFs tied to individual semiconductor stocks, which are believed to have exacerbated market volatility and caused investor losses totaling billions of dollars.

Opposition-backed former Seoul city councilor Lee Jong-bae submitted a criminal complaint against Kim to the Supreme Prosecutors' Office via the government's online petition system. Lee alleges that Kim instructed financial regulators to launch these products despite serious market risk warnings. He further claimed that the Financial Services Commission has internally reviewed a plan since January to establish the regulatory framework in the second quarter, aiming for product launches in the second half of the year.