Lee Jae-myung Administration's ETF Gate Allegations... What are the Issues?

Allegations have been raised that the Lee Jae-myung administration used the introduction of leveraged ETFs to boost local election approval ratings. It is claimed that individual investors incurred 54 trillion won in losses from single-stock leveraged ETF products from their peak. Critics point out that the product, originally scheduled for introduction in the second half of the year, was pushed forward by four months ahead of the local elections, indicating artificial market intervention. Accordingly, the necessity of a parliamentary investigation and special prosecutor has been emphasized.

The fact that the sons of Financial Supervisory Service Director Lee Chan and Department Head Kim Young-beom are working at Mirae Asset has raised suspicions of conflict of interest and collusive ties between politics and business. There is growing demand for transparency regarding the background of these high-ranking officials' children securing jobs at major financial corporations.

Allegations have surfaced that the National Pension Service's investment limits were changed and sales delayed to secure victory in local elections. The upper limit for domestic stock holdings by the National Pension Service was significantly raised from 19.4% to 28.8%, and the sale of excess holdings was postponed until the end of June, after the local elections. This has drawn criticism as an attempt to artificially boost stock prices to improve approval ratings.

Suspicions have been raised regarding the background of former Department Head Kim Young-beom's sudden resignation after rumors of a drinking meeting with Mirae Asset Chairman Park Hyun-joo. Following Kim Young-beom's exclusion from the cabinet announcement, his abrupt resignation two days later led to criticism from the People Power Party that it was an evasive resignation due to the 'meeting rumors'.

The unprecedented situation of ballot shortages and problems with the National Election Commission have raised concerns about the infringement of voting rights. Young people in their 20s and 30s have gathered in public squares to voice their concerns, escalating the debate over alleged election fraud. While some outside voices criticize the claims of election fraud, internal counterarguments suggest these allegations significantly impact the political landscape. The actions of Representative Jang Dong-hyuk are also drawing attention for their potential influence on the balance of power.

As Representative Jang Dong-hyuk's leadership system has strengthened, a 'Pro-Jang' faction has formed within the party. Analysis suggests a shift in power dynamics from a structure centered on veteran and floor leaders to one focused on first and second-term lawmakers and the party itself. This is interpreted as a move to consolidate power against challenges to Representative Jang Dong-hyuk.

Allegations that Representative Lee Jae-myung is delaying trials and attempting to influence Supreme Court justice appointments have raised concerns about undermining judicial independence. Critics denounce it as an attempt by a defendant to choose judges, a 'boxing-in' tactic, and it has sparked controversy over the erosion of the separation of powers and the denial of the rule of law.

Regarding the method of nominating Supreme Court justices, a principled argument has been made for re-forming the recommendation committee and making nominations through a proper process. It is asserted that the current committee's composition and procedures must be adhered to, and that candidates should be recommended according to legal procedures, not 청와대 (Cheong Wa Dae) directives. This is proposed as a way to ensure fairness and transparency in the Supreme Court justice appointment process.

The policy of relocating and consolidating public institutions has been criticized for lacking policy efficiency and being union-centric. It has been pointed out that the first wave of relocations showed minimal economic effects, such as population outflux, and problems like the negative effects and debt issues of the Korail-SR merger. It is argued that these policies were not made with consumers or the public in mind but rather for unions or based on the government's ideology.

Lobbying allegations have surfaced against nominee Kim Seung-won, who is suspected of using public complaints as a pretext to lobby for the resolution of clinical trial delays for a specific company. The indictment reportedly includes details of Kim Seung-won directly calling the Commissioner of the Ministry of Food and Drug Safety to exert pressure, and the Commissioner expressing dissatisfaction. This is pointed out as an instance of inappropriate influence peddling by a member of the National Assembly.

A recording detailing the circumstances between Representative Kim Seung-won and broker Yang has been released, revealing new facts. The recording captures Yang requesting approval from the Ministry of Food and Drug Safety for an acquaintance's matter, and she also mentions conversations with Representative Kim Seung-won and sharing text message screenshots. This woman referred to Representative Kim Seung-won as 'Oppa,' 'hyung-ah,' and 'mentor,' showing off their close relationship. Based on these circumstances, suspicions of 'operation forces' have been raised, expanding the impact of the incident.

Allegations have been raised about the existence of an 'underground organization' within Representative Yong Hye-in and the Basic Income Party. Multiple activists claim to have worked with Representative Yong Hye-in for years and that most of the Basic Income Party's key officials originated from this organization. This narrative, emerging from the progressive camp, points to a discrepancy between external activities and the internal reality of the party, fueling controversy. The Basic Income Party, however, states that many aspects of this remain unconfirmed.

A clash of constitutional interpretations has arisen regarding the re-nomination of Supreme Court justices. The issues that arise if the President repeatedly rejects candidates nominated by the Chief Justice, and the legal interpretations of this, are at odds. The debate over the scope of the Chief Justice's nomination power and the President's appointment power is intensifying, with some arguing that the candidate recommendation committee should be disbanded and the process restarted.

The timing of the Board of Audit and Inspection's announcement regarding career bonuses paid by the Supreme Court has been called strange. The issue of 2 million won being paid monthly to Supreme Court justices since 2022 suddenly emerged amidst conflict, leading to interpretations of a political motive behind the Audit Board's announcement. Attention is focused on the background of this announcement, which came at a time of intense debate over the appointment of the Chief Justice.

Criticism has been raised that Democratic Party supreme council members, who visited Chief Justice Cho Hee-dae's father's funeral, pressured the Chief Justice throughout the mourning period. Critics argue that the continued political pressure, such as demands for National Assembly attendance by Democratic Party figures including Supreme Council member Lee Sung-yoon, violated political etiquette and human decency. Criticism is spreading that it was inappropriate to continue political attacks in a situation where condolences should have been offered.

Representative Lee Jae-myung's proposal to purchase public housing has been criticized as a 'socialist idea.' Critics argue that mass purchasing foreclosed properties does not solve fundamental problems, and that the increase in foreclosures due to tax arrears is the core issue. In particular, the situation where the state is both a creditor and a buyer is seen as contradictory and against market economic principles.

The push to create a 100 trillion won Future Response Fund is being criticized as 'unconstitutional.' It is argued that while the fund's name is 'Future Response,' it is closer to a 'Future Generation Exploitation Fund.' This leads to criticism that the policy imposes an excessive burden on future generations.

Concerns have been raised that the Future Response Fund's purpose and plans are unclear, making it highly likely to become a 'slush fund.' There are also criticisms that it could be arbitrarily used for unverified projects such as basic income for farming and fishing villages. This raises issues of transparency and accountability in fund creation, and concerns that it could negatively impact fiscal soundness.

In the death of Jang Mi-ran, police drew criticism for prematurely concluding 'extreme choice' as the cause in the initial stages of the investigation. Critics argued it was inappropriate to determine the cause of death on the day of discovery. Subsequently, the police caused confusion by retracting their stance, stating the cause of death was unclear until the National Forensic Service's opinion was received. This was criticized for unclear communication between investigative command and administrative organizations.

Concerns have been raised that adjusting the investigative powers of the police and prosecution could dismantle the system of checks and balances between power institutions. It is argued that taking away investigative powers from a power institution is tantamount to eliminating the service itself, and that the core of reform lies in establishing a system where other institutions can monitor and check against abuse of investigative power. Critics assert that stripping the prosecution of its investigative power eliminates a means of checking police power, increasing the risk of power monopolization.