The government has begun securing "emergency measures authority" to adjust the leverage ratio of single-stock leveraged ETFs, prompting fierce attacks from the opposition party, saying "the National Assembly wasn't necessary when opening it, so why is it necessary when closing it?" Responsibility is rapidly emerging over the government's "too little, too late" administration, pushing for legislative amendments just 67 days after listing.

On August 2, 2026, the government announced it would secure "emergency measures authority" for single-stock leveraged ETFs through amendments to the Capital Markets Act. This occurred just 67 days after the product was permitted through revision of enforcement decrees in April and listed on the market on May 27. The government's direct mention of the necessity for market control through legislative amendment is being criticized as a belated admission of the product's risks.

In particular, criticism of the government's "too little, too late" response has intensified as market confusion has worsened, with circuit breakers being triggered 15 times in July alone in relation to this product. The conservative opposition has strongly criticized the Lee Jae-myung government for implementing a "hasty introduction bypassing the National Assembly," and is now engaged in "damage control" for the product.

Kim Eun-suk, floor spokesperson for the People Power Party, pointed out the government's double standard, asking "the National Assembly wasn't necessary when opening it, so why is it necessary when closing it?" Spokesperson Kim called for the immediate resignation of Kim Yong-beom, presidential policy director, and urged the government to transparently disclose the background behind the product's introduction. Additionally, the People Power Party demanded an apology from the Lee Jae-myung government for misusing the National Pension Service, which represents the people's retirement funds.

[Photo=Yonhapnews]

The Reform Party also joined the debate over responsibility for the incident. Policy Committee Chair Choi Bo-yun and lawmaker Cha Ho urged the Financial Services Commission and other relevant agencies to transparently disclose their decision-making processes. Additionally, they emphasized that when amending the law, clear requirements must be specified to enhance market predictability. This can be interpreted as an argument that establishing rational standards should precede unilateral government measures.

The government's push to amend the Capital Markets Act has brought renewed focus to the urgent market situation that followed: the product's approval in April, listing on May 27, and circuit breakers being triggered a whopping 15 times during the July market crash. As the government's premature policy implementation and subsequent "damage control" administration are laid bare, political disputes over responsibility are expected to intensify further, alongside controversy over "hasty introduction."

While the government's legislative amendment push is primarily aimed at addressing immediate market turmoil, it is simultaneously bringing the hasty nature of single-stock leveraged ETF introduction and transparency issues in policy-making to the surface. This is expected to accelerate social debate by raising fundamental questions not only about market stabilization but also about the credibility of government decision-making and, more importantly, the protection of the National Pension Service, which represents the people's retirement funds.