The mayor of Seoul, South Korea, criticized the South Korean government for allowing leveraged products to disrupt the stock market

BlockBeats message, July 17, according to Yonhap News Agency. Seoul Mayor Oh Se-hoon posted a statement, sharply criticizing the issue of leveraged derivatives that have caused violent fluctuations in the South Korean stock market, as well as the “active debt relief” policy proposed by President Lee Jae-myung, and urging the government to introduce fundamental countermeasures as soon as possible.

He said that this year, the South Korean KOSPI index has cumulatively triggered a temporary programmatic trading limit mechanism 37 times, already surpassing the 26 times recorded throughout the full year of the 2008 global financial crisis. Oh Se-hoon criticized: “The government knew that a single equity leveraged derivative product carries enormous risks, but it still approved its listing, and while retail investors’ assets kept evaporating, it stood by and did nothing, ultimately leading to today’s situation.”