South Korean authorities weigh curbs on leveraged Samsung, SK Hynix ETFs

South Korea’s financial regulators are weighing investor-protection and stability measures for single-stock leveraged ETFs tied to Samsung Electronics and SK Hynix after rapid asset growth, heavy retail participation and a sharp KOSPI selloff that was followed by a partial rebound. Financial Supervisory Service Governor Lee Chan-jin said he regrets introducing the products and called the policy a failure, warning that overheated speculation, margin-funded trading and ETF rebalancing flows could amplify volatility and deepen retail losses in a market heavily concentrated in the two chipmakers. The products’ market value rose from KRW 4.5 trillion on May 27 to KRW 9.6 trillion by June 12, while separate debate over taxing unrealized gains on stocks and real estate continued at a June 23 tax reform forum.

The information on this website is generated using AI and we cannot guarantee its accuracy. Please use it as reference information only.