Director Kim Yong-beom "La cancelación de ETF apalancados de un solo valor es imposible...preocupaciones por el impacto de mercado de escala de 10 billones de wones"

정휘 Reportero
Kim Yong-beom, Cheong Wa Dae Policy Director:
[Foto=Yonhapnews]
Kim Yong-beom, director of policy at Cheong Wa Dae, emphasized on the 19th that the argument for delisting single-stock leveraged exchange-traded funds (ETFs) is "hard to imagine," and stressed the need for additional supplementary measures to minimize market shock.

Kim appeared on KBS's "Sunday Diagnosis Live" that day and said, "Investors are already investing and the product size has formed over 10 trillion won," adding "If we delist it, that itself would give tremendous shock to the market." He then countered, "Shouldn't we resolve those selling pressures?"

Regarding the recent supplementary measures the authorities announced to increase the basic deposit requirement to 30 million won in cash when trading leveraged ETFs and allow transactions of 20 units at a time, he predicted it would "be able to resolve a considerable portion of side effects." However, he noted that "leveraged products have an aspect where their impact doubles during market downturns," pointing out the need for additional discussions among authorities, asset management companies, and securities firms. He particularly emphasized the need to minimize the deviation rate, which is the difference between ETF net asset value (NAV) and actual market prices, explaining that "we can further discuss ways to optimize the burden of selling to match the deviation rate."

He also expressed his position on the real estate "triple strength" issue. Regarding the phenomenon of transaction, lease, and monthly rent prices rising simultaneously, Kim said, "I am truly sorry to many citizens," expressing urgency. As supply expansion measures, he proposed activating private rental acquisitions for non-apartment housing, private officetel supply, conversion of commercial land in the third new cities to residential use, and allowing exclusive officetel conversion of commercial buildings in Seoul. However, regarding redevelopment and reconstruction, he drew the line saying it is "not a magic key" and that "it takes at least 3 to 5 years," making short-term effects difficult to expect. Regarding utilization plans for Seoul's semi-industrial zones, he said he has scheduled a separate meeting with Seoul Mayor Oh Se-hoon.

Regarding real estate tax reform, he reconfirmed the principle of treating multi-property owners and single-property owners differently and applying differential treatment based on actual residence. He conveyed that there is a direction to apply separate standards for ultra-high-priced owner-occupied single properties.

Meanwhile, Kim addressed criticism of delayed U.S. investment, saying "That's not the case. We are proceeding on an appropriate schedule" and "We are preparing so that the first U.S. investment can materialize in August or September." Regarding the background of introducing "K-New Deal Academy," a project to support youth labor market entry, he explained, "'Republic of Korea chance,' not 'parent's chance,' should be available."

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