Single-Stock Leveraged ETFs for Samsung, SK Hynix Fall Over 50% Since May Launch; Assets Hit 15 Trillion Won

According to Korea Economic TV, single-stock leveraged exchange-traded funds for Samsung Electronics and SK Hynix, launched in late May, have plunged sharply in recent market declines. As of yesterday, all 14 leveraged products have fallen below their 20,000 won offering price, with some declining over 50% from peak within roughly one month. Combined assets for these products have grown to approximately 15 trillion won, with the KODEX SK Hynix Leveraged ETF alone reaching about 5 trillion won.

According to the Capital Market Research Institute, single-stock ETF concentration has increased volatility for these two stocks, with rebalancing trades potentially amplifying price swings. South Korean policymakers have called for delisting these products, though regulators face concerns over potential supply shocks if forced liquidation occurs. Financial regulators plan to discuss improvement measures with asset managers, with options including stricter entry requirements and limits on new product launches.