Korea's 2x single-stock ETFs on SK Hynix and Samsung wiped out ~80% of retail money

On May 27, 2026, South Korea introduced its first single-stock leveraged ETFs, 2x products tracking SK Hynix and Samsung Electronics, issued by Samsung Asset Management. Retail investors poured in — net purchases of 14 trillion won, about $9.7 billion, against roughly 2 trillion won from foreigners — chasing the semiconductor rally with twice the leverage.

The rally reversed violently. The KODEX SK Hynix Single Stock Leverage ETF fell more than 80% from its June 23 peak, and the Samsung equivalent fell almost 75% from its June 3 peak, as the Kospi plunged almost 35% in a month on a chip-sector downturn. Retail investors who had bought near the top were left holding leveraged losses with no cushion.

Finance Minister Koo Yun-cheol apologised in parliament, conceding the products were introduced "without careful consideration." Financial Services Commission chief Lee Eog-weon said the regulator was considering restricting the products to professional investors and possibly lowering the 2x leverage, calling it "too large." The episode became a national example of a product approved for retail before its risks were understood.