South Korean investors pulled nearly $1 billion from leveraged ETFs linked to Samsung and SK Hynix this month, capping one of the most dramatic boom-and-bust cycles in recent ETF history. These products, launched at the end of May 2026, attracted approximately 14 trillion won, around $9.7 billion, from retail investors within roughly two months, pushing combined assets under management to approximately $28 billion. The KODEX SK Hynix Single Stock Leverage ETF cratered more than 80% from its peak on June 23, while its Samsung equivalent dropped about 75% from a June 3 high. The finance minister publicly apologized in late July, and regulators tripled the minimum cash requirement to 30 million won, halted new product listings, and restricted retail access. Daily trading turnover plunged more than 90%, with cumulative losses reaching into the trillions of won.
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