South Korea to Launch Stock Leveraged ETFs Linked to Samsung and SK Hynix

Huo Xing Cai Jing reports that on May 24, South Korea will launch its first individual stock leveraged ETFs, which track semiconductor manufacturers Samsung Electronics and SK Hynix, aiming to deliver daily returns of up to two times the positive or negative movement of the underlying stocks. Analysts expect these ETFs to attract strong demand from over 14 million retail investors in South Korea. However, given that intraday fluctuations of 5% in the KOSPI index have become increasingly common, this enthusiasm could further amplify market volatility. The CEO of Fibonacci Asset Management in Singapore stated, “These ETFs will exacerbate existing concentration risks, posing a structural challenge for long-term investors, as index volatility is likely to remain elevated, making the Korean market difficult to navigate.” Yoon Jaehong, an analyst at Daewoo Future Asset, estimates that net inflows into the 14 leveraged ETFs targeting Samsung Electronics or SK Hynix—scheduled to list by end-May—could reach up to 5.3 trillion Korean won. He noted that in the first two months of this year, the number of investors who completed the mandatory online training required before investing in leveraged products reached 300,000, surpassing the total for all of 2025. (Jin Shi)