Celebrity chef Yeo Kyung-ok disclosed on the 22nd via social media a 61.38% loss on her SK Hynix single-stock leveraged ETF investment, with approximately 120 million won reduced to 46 million won in current valuation. The loss, exceeding 74 million won, resulted from the high volatility inherent in leveraged products designed for high-risk, high-return strategies. This disclosure comes amid growing regulatory scrutiny of single-stock leveraged ETFs in Korean stocks, with authorities citing their role in amplifying market volatility and President Lee Jae-myung ordering swift response measures on the 21st.
Yeo Kyung-ok Discloses 74 Million Won Loss on SK Hynix Leveraged ETF
Yeo posted on social media on the 22nd with the message "It's sad, but I'll show you an example of investment failure," accompanied by a photo of her stock account. The disclosed details revealed the harsh valuation status of the SK Hynix single-stock leveraged ETF. The investment principal of approximately 120 million won has been reduced to a current valuation of around 46 million won, cut by more than half. The loss rate stands at -61.38%, with the evaluation loss amount appearing to exceed 74 million won.
Chef Previously Recorded 102.11% Return on Samsung E&A Investment
This shocking loss disclosure contrasts sharply with the performance she boasted about just a month earlier. Last month, Yeo surprised followers by revealing an account holding 9,000 shares of Samsung E&A, showing an evaluation profit of 245 million won and a return rate of 102.11%, earning her admiration as an "investment genius."
Yeo is a renowned stock market expert in the industry. During her hotel employment in 2004, she topped a real investment competition with a 750% return in six months. Her brother, chef Yeo Kyung-rae, testified on a broadcast that "my younger sister won first place in a stock competition and even received a luxury sedan as a prize," drawing attention. She revealed at the time that she declined scouting offers from various advisory firms to continue her path as a chef.
Government Orders Early Implementation of Leveraged ETF Deposit Requirements
Controversy continues to surround single-stock leveraged exchange-traded funds (ETFs). Amid mounting criticism that their high-risk structure has significantly amplified market volatility, the government is accelerating institutional reforms.
Global investment bank JP Morgan recently identified deleveraging effects from leveraged ETFs as decisive in the steep decline of the Korean stock market. The analysis points out that despite solid market fundamentals, structural limitations causing forced selling during downturns amplified index volatility.
In fact, the net assets of leveraged ETFs based on domestic assets soared to 50 billion dollars (approximately 73.7 trillion won) at the end of last month, showing a bloated scale four times that of the US market. Criticism emerged that leveraged funds flowing in during an overvaluation phase led to cascading liquidations when combined with a correction period, ultimately causing a market vicious cycle.
As the situation worsened, President Lee Jae-myung stated at a cabinet meeting on the 21st that "it is true that domestic investors' dissatisfaction has been provoked" and ordered "bold and swift implementation of necessary response measures."
The Financial Services Commission has decided to introduce early the upward adjustment of basic deposit cash to 30 million won and strengthened deviation rate management measures, originally scheduled for implementation in August. Additionally, the commission plans to completely block new listings of single-stock leveraged products while reviewing additional regulatory measures including substantiating pre-education and strengthening delisting standards, focusing all efforts on market stabilization.
FAQ
What loss did Yeo Kyung-ok disclose on her SK Hynix leveraged ETF investment?
Yeo Kyung-ok disclosed on the 22nd a 61.38% loss on her SK Hynix single-stock leveraged ETF investment, with her principal of approximately 120 million won reduced to a current valuation of 46 million won, resulting in a loss exceeding 74 million won.
What measures did the government announce regarding leveraged ETFs?
President Lee Jae-myung ordered swift response measures on the 21st, and the Financial Services Commission decided to introduce early the upward adjustment of basic deposit cash to 30 million won, originally scheduled for August implementation, while completely blocking new listings of single-stock leveraged products.
