South Korea’s Finance Minister Koo Yun-cheol apologized before Parliament after the introduction in May of single-stock leveraged ETFs, which saw retail investors make net purchases of 14 trillion won ($9.7 billion) compared to roughly 2 trillion won for foreign investors. The KODEX SK Hynix Single Stock Leverage ETF has plunged more than 80% since its peak on June 23, while the equivalent Samsung-tracking product fell nearly 75% from its June 3 high. The Kospi index has dropped nearly 35% over the past month, with semiconductor stocks at the center of this correction. The Financial Services Commission is now considering restricting access to these products to professional investors only and reducing the leverage multiple.
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