KOSPI Plummets Nearly 40% in 27 Trading Days as Single-Stock Leveraged ETF Sparks Market Crisis

According to Yonhap News, South Korea's KOSPI index has tumbled nearly 40% within 27 trading days recently, triggering a major market crisis. The collapse centers on single-stock leveraged ETFs, with the government and individual investors locked in blame over the cause. The Financial Services Commission defended its policies, citing structural factors including heavy weightings of Samsung Electronics and SK Hynix. Meanwhile, international outlets including Financial Times, The Economist, and Bloomberg have criticized the Korean government's market stimulus policies as contributing to the volatility. Individual investors rushed into markets based on government support signals but faced substantial losses amid circuit breaker triggers.
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