The People Power Party in South Korea discusses filing a national compensation claim with the government over leveraged ETF losses involving Samsung Electronics and SK hynix.

PANews July 28, according to Etoday, South Korean People Power Party lawmaker Kim Eun-hye is considering whether to file a national compensation lawsuit against the government over losses suffered by investors in single-leverage ETFs tied to Samsung Electronics and SK Hynix. Fellow party lawmaker Na Kyung-won has also publicly called for a comprehensive investigation into losses incurred by the public and is actively considering national compensation, proposing to examine the process of the “hasty introduction” of Ming Qing Wa-dae and financial authorities through parliamentary investigations and special inspections.

The controversy stems from the Financial Services Commission on May 27 approving the launch of single-stock leveraged products tracking Samsung Electronics and SK Hynix with 2x daily price movement. After listing, funds surged rapidly; mechanical rebalancing amplified stock price volatility. By June 25, 14 products had net assets of 16.28 trillion won, with daily trading volume reaching 14.48 trillion won. On July 16, the financial authorities raised the initial margin requirement from 10 million won to 30 million won in cash and brought forward measures originally planned for August to July 31. The Financial Services Commission argues that the revisions followed legal procedures, and both sides are expected to clash at the parliamentary level.