Samsung, SK Hynix Leverage ETFs Hit 28-30% Losses in 2 Weeks as Retail Investors Flee

According to the Korean Exchange, individual investors in Samsung Electronics and SK Hynix single-stock leverage ETFs recorded net selling of hundreds of billions of Korean won on July 20-23, amid semiconductor volatility. Fund losses reached approximately 28-30% in just two weeks due to negative compounding effects, as daily price swings caused cumulative losses to exceed actual stock declines.

South Korean financial authorities will tighten deposit requirements for single-stock leverage products effective July 31, raising the minimum cash deposit from 10 million to 30 million Korean won and no longer accepting stocks or bonds as collateral. Industry analysts expect trading volumes in these products to decline significantly as retail investors redirect capital to more stable dividend-focused ETFs.