South Korean Retail Investors Lose Heavily as Samsung, SK Hynix Leveraged ETFs Plunge 70% After Semiconductor Reversal

According to KB Financial Group, South Korean retail investors lost heavily after Samsung and SK Hynix leveraged ETFs plunged following a semiconductor sector reversal beginning in June. The KODEX SK Hynix Single Stock Leverage ETF, designed to generate twice the daily movement of SK Hynix shares, fell approximately 70% from its record high and declined roughly 50% from its launch price on May 27.

Retail investors had purchased a net 14 trillion won ($9.4 billion) in these products since their introduction. Jung In Yun, founder of Fibonacci Asset Management, noted that the affected investors are predominantly South Korean individuals aged 40–50, many of whom had become comfortable using leverage and making concentrated bets on technology stocks. The Bank of Korea warned that leveraged stock investment among retail traders has reached record levels, though it does not currently view the situation as systemic risk.