The Democratic Party on the 20th called on the Financial Services Commission (FSC) to conduct strong monitoring of single-stock leveraged exchange-traded funds (ETFs) and to devise additional measures if necessary.
Democratic Party lawmakers on the National Assembly's National Policy Committee held a party-government meeting with the FSC at the National Assembly in Yeouido, Seoul, that day, receiving a briefing from FSC Chairman Lee Eok-won and others.
Rep. Park Sang-hyuk of the Democratic Party, the ruling party's secretary on the National Policy Committee, told reporters, "There was a briefing on the content announced last Thursday." He added, "Overall, the lawmakers asked for stronger monitoring and assessment of market conditions, and, if necessary, for additional measures to be devised."
On the 16th, the FSC announced supplementary measures to raise the basic deposit requirement for domestic and overseas single-stock leveraged ETFs from the current 10 million won to 30 million won.
Park also said, "As the National Policy Committee was not held smoothly in the first half, leaving numerous legislative tasks piled up, there was a briefing on advancing various legislative tasks aimed at moving toward inclusive finance and productive finance."
He continued, "I understand there are various discussions on the issue of improving bank governance structures, and we asked the financial authorities to swiftly prepare improvement measures so that these matters can proceed with transparency."
Regarding the enactment of a "Digital Asset Basic Act" to foster the digital asset industry, he said, "Several lawmakers have proposed bills, and since market forecasts differ on the effects if the 'GENIUS Act' takes effect in the United States next year, there were general remarks that our government should quickly prepare legislatively. We agreed to discuss it further."
On the schedule for future discussions, Park said, "The National Assembly Act requires holding a bill subcommittee at least twice a month, so various discussions must take place before then." He added, "We will not set a specific date but will discuss it in detail on a case-by-case basis."
The National Policy Committee subsequently received a briefing from the Financial Supervisory Service (FSS), including FSS Governor Lee Chan-jin. Park said, "(The lawmakers) noted that various risks can arise as interest rates rise in the financial markets, so while thoroughly managing and supervising those areas, ordinary citizens must not suffer harm when taking out loans."
