Single-Stock Leverage ETFs Draw 73T Won in Korea, Down 45%, as Government Raises Entry Bar

According to South Korea's stock exchange, single-stock leverage products focusing on Samsung Electronics and SK Hynix absorbed 73.3 trillion won in net inflows over the past month through July 15, though returns fell 45-48%. The KODEX SK Hynix single-stock leverage product alone drew 34.5 trillion won—the largest ETF inflow on record—while individual investors accounted for the majority of purchases totaling 58.5 trillion won across both stocks.

To curb volatility and losses, South Korea's government will require a minimum cash deposit of 30 million won from August 5 to purchase leverage products, up from previous standards. The measure aims to reduce retail investor participation in high-risk instruments that have amplified market swings and contributed to losses across regional markets, including Japan's semiconductor stocks.