The KOSPI index fell below the 6,000 mark, and as the stock market plummeted for the second consecutive day, the National Assembly's Political Affairs Committee yesterday identified single-stock leveraged ETFs as the culprit, describing the situation as a "financial market collapse" and a "crisis more severe than a financial crisis." Members from both ruling and opposition parties launched fierce accusations against financial authorities.

The domestic stock market entered a state of panic today. The KOSPI index fell below the 6,000 level and continued its sharp decline from the previous day. This has caused investor anxiety to reach an all-time high. At the National Assembly's Political Affairs Committee plenary session held on the 28th, lawmakers from both parties unanimously identified single-stock leveraged ETFs as the core cause of stock market instability and strongly criticized the Financial Services Commission and the Financial Supervisory Service.

The Democratic Party criticized the government's sluggish response and urged the introduction of stronger regulations. Rep. Kim Yong-man pointed out that "the government's ETF measures announced only mid-month came too late." Rep. Park Hong-bae emphasized the severity of the situation and urged that "the basic deposit requirement for ETFs should be raised to 50 million won and adjustments to leverage target ratios should be considered." Rep. Son Myung-soo characterized the current situation as a "financial market collapse without a financial crisis or war" and repeatedly demanded swift and bold action from financial authorities.

The People Power Party raised suspicions that there was a political background in the process of introducing ETF products and mounted even stronger pressure on financial authorities. Rep. Song Eon-seok raised strong suspicions, asking, "Wasn't this pushed through hastily to help with the June 3 local elections?" Reps. Park Dae-chul and Shin Dong-wook characterized the current situation as a "man-made disaster" caused by the Financial Services Commission and Financial Supervisory Service, criticizing it as "more serious than a financial crisis." Reps. Shin Dong-wook and Park Sung-hoon went further, calling for the "resignation of the FSC chairman and FSS governor," while demanding a "national investigation" into the background of ETF introduction and the approval process, making an all-out move.

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While the ruling and opposition parties shared a common awareness of the crisis caused by falling stock prices, they showed stark differences in analyzing the cause of the situation, assigning responsibility, and presenting solutions. The Democratic Party criticized the authorities' sluggish response and inadequate policies while demanding stronger regulatory measures, while the People Power Party characterized the government's hasty administration as a "man-made disaster" and focused on demanding the resignation of officials and even mentioning a national investigation, while raising suspicions about the background.

Financial market controversies are not limited to ETFs and are spreading to the broader economy. The National Assembly's Political Affairs Committee also saw continued disputes between ruling and opposition parties over real estate loan regulations. Rep. Park Jun-tae of the People Power Party demanded regulatory easing, saying the government is "perfectly completing a two-part set of monthly rent refugees and stock beggars," while Rep. Kim Hyun-jeong of the Democratic Party countered by defending the government's policies.

As fierce accusations continue from the political sphere, instability in the domestic financial market is intensifying further. With the KOSPI index falling below the 6,000 mark and investor distress growing, both ruling and opposition parties appear focused on shifting blame while showing lukewarm responses to implementing substantive market stabilization measures. There is an urgent need to move beyond simple political disputes and implement fundamental improvements to the financial system and measures to protect investors. The future moves of financial authorities and the political sphere are expected to determine the direction of the domestic stock market.