Korean regulators are paying attention to the high-risk behavior of retail investors excessively chasing leveraged ETFs tied to Samsung and SK Hynix, and are considering separate measures in response.

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BlockBeats News, June 23 — Lee Chan-jin, the head of the Financial Supervisory Service of South Korea, said that the authorities are considering separate stabilization measures for single-stock leveraged ETFs. At a press conference held on June 22, 2026, Lee said that the negative effects brought about by single-stock leveraged ETFs have intensified. In addition to strengthening monitoring of trading activity, regulators are also considering other market-stabilization measures to hedge against the chain-reaction risks that could be triggered by the sharp volatility of single-stock leveraged ETFs tracking SK Hynix and Samsung Electronics.

Lee said, “I am deeply concerned that it is difficult for ordinary investors to obtain meaningful returns, while all profit dividends end up in the hands of operating institutions.” On May 27, 2026, single-stock leveraged ETFs with Samsung Electronics and SK Hynix as the underlying assets were listed on local South Korean exchanges, attracting a frenzy of market capital inflows. According to statistics from South Korea’s Financial Supervisory Service, the total market value of these single-stock leveraged ETFs has increased from 4.5 trillion won on the day they were listed to 9.6 trillion won as of June 12. The average daily turnover rate of these single-stock leveraged ETFs is as high as 122.5%, far above the 30.2% turnover rate of other leveraged and inverse ETFs. (Caixin)

Possibly affected by this news, today’s South Korea KOSPI index has fallen 8.18% as of the time of publication, and has triggered circuit breakers twice.

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