Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok said regarding the controversy over holding U.S. government bonds that he "received a passive portfolio recommendation and purchased U.S. government bonds in August last year."
Deputy Prime Minister Choi noted during the "Impeachment Investigation Hearing" held by the National Assembly's Legislation and Judiciary Committee on the 16th that he converted foreign currency deposits he had held since his time as a civilian in 2018 into U.S. government bonds.
A passive portfolio refers to structuring and managing a portfolio so that the operational revenue yield of financial products closely approximates the average market yield. It is generally designed to generate stable returns while taking on minimal risk.
According to the Official Gazette disclosing the asset status of high-ranking public officials published on the 27th of last month, Deputy Prime Minister Choi is reported to hold a 30-year maturity U.S. government bond investment product worth approximately 197.12 million won. The opposition, including the Democratic Party of Korea, has claimed that the U.S. government bond investment product benefits as the value of the won declines, calling it "an act of treason."
In response to the opposition's criticism, Deputy Prime Minister Choi said, "The purchase of U.S. government bonds has nothing to do with currency fluctuations" and "I bought it as recommended but didn't pay enough attention to it." He added, "I regret that this has led to misunderstandings regarding personal issues and I feel the weight of public office," further stating, "I didn't pay enough attention to it."