Odaily Planet Daily report: South Korea will launch single-stock leveraged exchange-traded funds linked to semiconductor giants Samsung Electronics and SK Hynix this Wednesday, offering investors greater potential for returns.
According to documents released by the Financial Services Commission and the Financial Supervisory Service, eight asset management companies in South Korea—Samsung Asset Management, Mirae Asset, Korea Investment, KB, Shinhan, Hanwha, Kiwoom, and Hana—will list a total of 16 single-stock leveraged and inverse ETFs based on Samsung Electronics and SK Hynix on the Korean stock exchange. Mirae Asset Securities will also launch two types of ETNs.
This launch comes as Korean investors increasingly focus on overseas-listed leveraged products linked to local stocks, while Korean regulators seek to draw retail trading activity back to the domestic market. Samsung Electronics and SK Hynix are South Korea’s two largest companies and key beneficiaries of growing demand for AI-related chips.
South Korea has over 14 million retail investors, and analysts expect strong demand for new funds amid sustained enthusiasm for AI-related investments. Net inflows into leveraged ETFs tied to Samsung and SK Hynix could reach as high as 5.3 trillion Korean won. (Science and Technology Daily)