Samsung, SK Hynix Leveraged ETFs Crash Below Issue Price on July 8, with 13 of 14 Funds Down Over 25%

According to Korea Exchange data released on July 8, thirteen of fourteen single-stock leveraged exchange-traded funds (ETFs) tracking Samsung Electronics and SK Hynix fell below their 20,000 Korean won issue price following sharp declines in the underlying stocks. Over a one-week period ending July 6, Samsung and SK Hynix shares dropped 11.38% and 16.94% respectively, while the KODEX Samsung leveraged ETF and TIGER SK Hynix leveraged ETF plummeted 25.1% and 35.66% due to the leverage multiplier effect. In tandem, investor deposit balances declined from approximately 136 trillion won at month-end June to 112 trillion won, indicating reduced purchasing power amid persistent foreign investor selling.
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