South Korea’s experiment with single-stock leveraged ETFs tied to Samsung Electronics and SK Hynix has reversed sharply, with assets under management falling roughly 50% from peak levels after heavy retail inflows and a semiconductor selloff. Sixteen products launched on the Korea Exchange on May 27 attracted about 14 trillion to 15 trillion won, or roughly $9.4 billion to $10.4 billion, in net inflows and pushed combined AUM near 17 trillion won, or about $11 billion to $12 billion. Regulators responded by raising the minimum deposit to 30 million won from 10 million won, prohibiting cash-only purchases, banning advertising, halting new launches and requiring five days of simulated trading. Retail investors then net sold about 1.773 trillion won across the products between July 31 and Aug. 28, while leveraged ETF trading fell to 4% of its June peak, according to Bloomberg. Cooler KOSPI turnover and more than $423 million in weekly outflows from the iShares MSCI South Korea ETF, or EWY, marked a broader retreat despite strong earnings from Samsung Electronics and SK Hynix.