South Korea Halts New Single-Stock Leveraged ETFs, Raises Deposit to 30 Million Won
South Korea's Financial Services Commission will temporarily halt new launches of single-stock leveraged exchange-traded funds and raise the minimum purchase deposit to 30 million won. The measures target funds tracking Samsung and SK Hynix, which alongside their leveraged ETFs now account for more than 70% of trading value in Korea's $4.1 trillion market.
The announcement follows an 8% crash in the KOSPI index earlier this week that triggered a trading halt for the eighth time this year. The regulator, which has faced pressure from President Lee Jae Myung to rein in the derivatives, is also exploring changes to spread the funds' daily rebalancing trades throughout the trading session instead of concentrating them near the close.
From the sources (25 posts)
@stockmktnewzKOSPI this morning just triggered its 7th circuit breaker trading halt of the year
@stockmktnewzKOSPI has been halted now 13 times so far this century 7 out of KOSPI's 13 trading halts in its have happened so far in 2026 per my partners below KOSPI was halted to the downside overnight 🔴
@exec_sumBREAKING: Korea's KOSPI index is now down 25% from peak The index is still up 58% YTD
@zerohedgeKospi: 3rd biggest one day drop since Lehman KORU 3x levered Kospi ETF now down 65% from its June 1 all time high; erased all gains since January.
@zerohedgeRetail Kospi investors bought everything foreign investors had to sell. But the retail party is ending: retail Margin Calls are soaring, hit 5% last Friday and on Monday will be far higher. Finally, retail brokerage deposits plunge by 30tr
@wallstengineSK Hynix’s U.S. ticker $SKHY started trading today and is down about 8%, following weakness in the underlying South Korean 🇰🇷 shares after one of their WORST sessions. Leverage Shares is also launching SK Hynix single-stock ETFs starting T
@stockmktnewzSK Hynix $SKHY stock is back to being worth less than $900 Billion For the active traders There will be a 1x Short SK Hynix ETF being launched tomorrow morning at 4AM ET trading under the ticker $SKHZ by my partners at Leverage Shares No
@exec_sumBREAKING: SK Hynix's US trading debut has unleashed second wave of leveraged ETFs, weeks after SpaceX's listing ProShares, Leverage Shares, and Rex Shares are among issuers racing to offer products that would deliver 2x or inverse returns
@stocksavvyshay$SKHY is down 9% following weakness in its South Korean-listed shares. The drop comes ahead of tomorrow’s launch of leveraged SK Hynix ETFs like $SKHX.
@wallstengineSK Hynix $SKHY is already down about 11% from its highs since the U.S. listing began trading. Tomorrow, options and the Leverage Shares ETFs are expected to begin trading: $SKHX: 2x long $SKHZ: 1x short More volatility coming? https://t.
@drjstrategySouth Korea’s overnight selloff reflects an over‑crowded AI and semiconductor trade finally breaking. Parabolic charts in key chip names signaled unsustainable momentum, with price action detached from realistic earnings trajectories. Suc
@burggrabenhSK Hynix leading the “this time it’s different” way
@kevrgordonThe Korean stock market is starting to see a bigger cluster of days with losses that exceed 8% (also true on the upside); which is unlike 2008, when there were only two days in which the KOSPI breached that threshold
@globalmktobserv‼️THIS IS HOW EXCESSIVE LEVERAGE AND SPECULATION ENDS: The SK Hynix long 2x Leveraged ETF, listed in Hong Kong, is down -64.4% from its June peak, according to Bloomberg. This comes as SK Hynix shares have fallen more than -35% from their
@globalmktobserv⚠️THIS IS ABSOLUTELY INSANE STAT: Samsung, SK Hynix, and their leveraged ETFs now account for more than 70% of total trading value in South Korea's $4.3 trillion stock market. TAP IMAGE TO SEE FULL INSIGHT👇
@steve_hankeSouth Korea's AI memory champion SK Hynix plunged 15.4% in Seoul on Monday, just days after its RECORD $26.5B U.S. IPO. WELCOME TO THE AI BUBBLE.
@photoncapSK Hynix’s Korean-listed shares plunged 15.4% after its Nasdaq debut, marking their worst day on record. The decline was driven more by profit-taking, additional share supply, and repricing between the Korean shares and U.S. ADR than by we
@zephyr_z9Koreans should avoid leverage and jumping from rooftops
@semianalysis_I feel a great disturbance in Korean margin accounts
@zerohedgeAs of July 13, 1.2 million Korean leveraged retail accounts triggered margin calls; of these, 320,000–360,000 accounts were fully forcibly liquidated by brokers (some had partial negative balances owed to brokers).
@businessSK Hynix shares fluctuate in Seoul, reflecting the AI memory selloff on Wall Street prompting some buying into weakness
@businessA new breed of leveraged products tracking major South Korean chip stocks are tumbling in value, threatening steep losses for the country’s retail investors who favor the tools to pursue amplified returns
@zerohedgeSK Hynix -4.5%
@bulltheoryioBREAKING: Korea Exchange (KRX) halted program selling for 5 minutes as KOSPI crashed -5%.
@negligible_cap*KOREA EXCHANGE ACTIVATES SIDECAR TO HALT KOSDAQ PROGRAM SELLING Like clockwork. SK Hynix down over 4%, bringing 2 day losses to 21%. Mass liquidations. Feels like Korean retail might just be running out of dip-buying funds. https://t.co