South Korea's KOSPI Falls 0.70% to 6,470.36 Amid Leverage ETF Volatility on July 21

According to Yonhap Infomax, South Korea's KOSPI index fell 0.70% to 6,470.36 on July 21, with the decline linked to heightened market volatility driven by single-stock leveraged ETFs. Samsung Electronics and SK Hynix, which account for approximately 50% of KOSPI's market capitalization, have been particularly affected. The single-stock leveraged ETF products, which track the share prices of these two companies at 2x leverage, were approved roughly two months ago. Financial Supervisory Service Governor Yi Chan-jin stated in a press briefing that he "personally reflects and regrets" the approval, noting the products are driving excessive turnover that primarily benefits securities companies.
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