President Lee Jae Myung's push to elevate South Korea’s stock market has triggered severe volatility, with the Kospi plunging nearly 40% from its June peak. Retail investors, many using leverage, faced margin calls and significant losses, sparking anger toward the administration for promoting risky derivative products. Lee’s approval rating dropped to 44.5%, near its lowest since taking office in 2024, with particular backlash among 30-something investors who trusted government support for equities. The government approved single-stock leveraged ETFs in May, attracting over $10 billion before the market downturn.

While Lee pledged to reach a Kospi of 5,000 by 2030, he acknowledged faster-than-expected growth but maintained the market remained undervalued at 8,000 before its collapse to 6,000. Experts note that Lee's personal investment background has tied his political fate closely to market performance, raising concerns ahead of the 2028 National Assembly elections.