KOSPI Leveraged Products Trigger Extreme Volatility: 56% of Trading Days Show 3%+ Swings in 30 Days

According to Korea Exchange, leveraged products linked to Samsung Electronics and SK Hynix triggered extreme volatility in KOSPI on July 9, with the index swinging over 6% intraday before closing up 0.62% at 7,291.91. Since their introduction on May 27, single-stock leveraged products have amplified market turbulence, with 16 of 30 trading days recording swings exceeding 3%, compared to just 9 days for all of 2025, according to NH Investment & Securities analysis. Trading in Samsung and SK Hynix leveraged products reached 15.6 trillion Korean won on July 8, accounting for 63% of the two stocks' combined 24.8 trillion won trading volume, indicating the tail is wagging the dog in Korea's equity market, according to market observers.
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