14 South Korean Leverage ETFs Hit Record Lows on July 13 as Semiconductor Stocks Plunge 60%

According to data from Korea Exchange and Koscom CHECK, 14 single-stock leverage exchange-traded funds (ETFs) tracking Samsung Electronics and SK Hynix hit record lows on July 13. KODEX SK Hynix Leverage ETF fell to 15,280 won intraday, down over 60% from its June 23 peak of 44,385 won since its May 27 listing. TIGER Samsung Electronics Leverage ETF dropped to 12,035 won, down approximately 60% from its June 2 high of 30,395 won.

The market value of 16 single-stock leverage and inverse ETF products shrank from 16 trillion won on June 25 to 10.03 trillion won by early afternoon, as semiconductor stocks' sharp decline amplified leverage losses. Kospi fell over 8%, triggering the seventh circuit breaker of the year, raising investor protection concerns among financial institutions.