Korean retail investors net purchased $1.8526 billion worth of SOXL, a 3x leveraged semiconductor ETF, from July 1 to July 20, 2026, according to Korea Securities Depository. The buying surge occurred as KOSPI plunged 21% from 8,300 to 6,500 during the same period, with Samsung Electronics and SK Hynix shares also falling sharply. The transaction pattern mirrors March 2026, when Korean investors poured over 1 trillion won into SOXL following the US-Iran war outbreak and subsequent market crash.
Korean Investors Net Purchase $1.85 Billion SOXL in 20 Days
From July 1 to July 20, Korean investors net purchased $1.8526 billion (approximately 2.7 trillion won) of Direxion Daily Semiconductor Bull 3X (SOXL) ETF. The ETF tracks 3x the daily returns of the Philadelphia Semiconductor Index. The net purchase amount already exceeds the entire March 2026 monthly total of $1.37296 billion by more than 35%, despite 10 trading days remaining in July.
July Transaction Volume Approaches March Monthly Total
Total SOXL purchase volume during the period reached $4.45786 billion, while sales settlement amounted to $2.60525 billion. Combined transaction volume exceeded $7 billion (10.3 trillion won), approaching the March 2026 monthly total of approximately $7.75 billion. An industry source familiar with the fund flows stated that Korean investor patterns over the past year show a clear tendency to sell when prices rise and buy when prices fall. The source noted that during the March crash following the US-Iran war, Korea alone saw net inflows exceeding 1 trillion won.
Leveraged ETF Buying Extends to KORU and QLD
Korean investors' rebound bets extended beyond SOXL to other leveraged products. Direxion Daily MSCI South Korea Bull 3X (KORU), which tracks 3x the daily returns of the MSCI Korea Index, ranked third among US stock net purchases by Korean investors in July with $220 million. ProShares Ultra QQQ (QLD), a 2x leveraged Nasdaq 100 ETF, ranked fifth with $150 million in net purchases.
KOSPI Falls 21% as Semiconductor Stocks Decline
KOSPI, which stood above 8,300 in early July, plummeted 7.89% on July 2 and continued falling to 6,500 by July 20, marking a decline exceeding 21%. Samsung Electronics and SK Hynix share prices also dropped sharply during the same period. The market movement resembles early March 2026, when KOSPI fell more than 12% in a single day and semiconductor stocks crashed following the outbreak of war between the US and Iran.
Market Structure Cited as Key Factor in Domestic Leverage Concentration
Securities industry analysts attribute the domestic leverage controversy to market structure issues. One securities researcher explained that overseas markets show diversification, noting that even when Tesla or NVIDIA leveraged products are launched, these stocks do not constitute large portions of S&P 500 or Nasdaq 100 indices. The researcher stated that in Korea, leveraged product scale grew larger than expected, and the underlying assets happened to be Samsung Electronics and SK Hynix, which account for over half of domestic market capitalization. The researcher added that while overseas ETF markets have diverse investors including institutional funds, Korea's market is dominated by retail investors, with funds concentrating in semiconductor leveraged products while dividend stocks and other sectors received minimal inflows.
Domestic ETF Trading Volume Declines Following Regulatory Issues
Following the regulatory controversy, signs emerged of capital shifting from domestic to overseas index products in Korea's ETF market. An asset management company official stated that domestic ETF trading volume decreased nearly 50% from its peak, possibly due to investors being alarmed by single-stock leverage issues. The official noted that previously, top purchases were domestic semiconductor or KOSPI 200 products, but recently funds have been flowing to overseas index products such as S&P 500 and Nasdaq ETFs among domestically listed ETFs.
FAQ
How much did Korean investors net purchase SOXL in July 2026?
Korean investors net purchased $1.8526 billion worth of SOXL from July 1 to July 20, 2026, according to Korea Securities Depository. This amount already exceeds the entire March 2026 net purchase total of $1.37296 billion by over 35%.
What other leveraged ETFs did Korean investors buy in July 2026?
Korean investors net purchased $220 million of KORU (3x leveraged MSCI Korea Index ETF), ranking third among US stock purchases, and $150 million of QLD (2x leveraged Nasdaq 100 ETF), ranking fifth, during July 2026.
