Tracking Korea-focused ETFs are broadly declining. As of press time, the Southern Hangang Tech ETF (03431) fell 4.12% to HKD 10.00, while the TR Korea ETF (02848) dropped 3.5% to HKD 1,628.00. Samsung Global Semiconductor ETF (03132) also slid 2.06% to HKD 62.88.

On the news front, market media reports indicate that former People Power Party Seoul City Council member Lee Jong-bae on August 3 formally reported Kim Yong-beom to the Supreme Prosecutors' Office via the National Petition system. The allegations claim that Kim pressured regulators and forcibly pushed for the listing of single-stock 2x leveraged ETFs, which could constitute abuse of power, coercion, and obstruction of business through force.

On August 6, Lee Jong-bae escalated the matter by filing a separate complaint through the "National Sincerity Drum" system against Lee Yi-won with the Supreme Prosecutors' Office, accusing him of dereliction of duty and abuse of authority to obstruct rights.

Notably, these complaints target the core of the regulatory decision-making chain. The whistleblower asserts that the controversial products were hastily introduced just before the election period and appear to have bypassed essential risk review procedures, including stress tests, ultimately leading to substantial losses for investors. Lee Jong-bae cited data submitted by the Financial Services Commission to People Power Party lawmaker Park Sung-hoon's office, which explicitly states that "no stress tests were conducted or commissioned regarding the single-stock leveraged ETFs."