How can it be like this?! After a plunge in Korean stocks, memorial wreaths are laid out in front of the National Assembly: retail investors demand the abolition of Samsung and SK Hynix leveraged ETFs

On July 29, according to the Chosun Ilbo, after leveraged ETFs tied to single stocks of Samsung Electronics and SK Hynix plunged, retail investor dissatisfaction intensified. That day, about 30 mourning wreaths appeared in front of the National Assembly in Yeouido, Seoul, calling for the cancellation of the related 2x leveraged ETF products.
The report said the wreaths were sent by a retail investor group called “Stock Market Normalization Meeting.” Their demands include strengthening investor protection and pushing for the delisting of the related products. The group believes that Samsung Electronics and SK Hynix single-stock leveraged ETFs amplify price volatility and further worsen retail investors’ losses.
The protest came after severe fluctuations in Korean stocks. In the previous trading session, the KOSPI fell by more than 8% at one point and triggered a circuit breaker; the single-stock leveraged products tracking Samsung Electronics and SK Hynix also dropped about 25%. Against the backdrop of a pullback in AI hardware-related sectors and a sharp selloff in semiconductor leaders, the risks of high-leverage products were rapidly magnified.
Korea’s financial authorities have started tightening trading thresholds. The Financial Services Commission plans, starting July 31, to require that when individual investors make new purchases or add to their positions in single-stock leveraged products, they hold at least 30 million Korean won in cash as a basic margin requirement. Lee Eung-won, chairman of the commission, said industry expectations are that after the measure is implemented, relevant trading accounts may fall from about 100k to about 10k, and trading volume may drop by about 60%. $SOL
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