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2026-05-24 10:45:13
[South Korea to Launch Leveraged ETFs for Individual Stocks; Retail Investor Frenzy May Amplify Index Volatility] 1. South Korea will launch its first batch of leveraged ETFs linked to individual stocks next week. These products primarily track the share prices of chipmakers Samsung Electronics and SK Hynix, aiming to achieve a daily return of plus or minus two times the underlying stock. 2. Analysts predict these ETFs will attract strong interest from South Korea's more than 14 million retail investors. However, with intraday volatility of up to 5% becoming increasingly common in the KOSPI index, retail investor enthusiasm could further exacerbate market volatility. 3. The CEO of Singapore-based Fibonacci Asset Management points out that these ETFs will amplify existing concentration risk, posing a structural challenge to long-term investors. As index volatility remains high, the predictability of the South Korean market will decrease. 4. Daewoo Mirae Asset analyst Yoon Jaehong predicts that the net inflow of funds for the 14 leveraged ETFs (all betting on Samsung Electronics or SK Hynix) scheduled to launch at the end of May could reach as high as 5.3 trillion won. 5. He also stated that in the first two months of this year, the number of investors who completed the mandatory online training before investing in leveraged products reached 300,000, exceeding the total number for the entire year of 2025.
