Korean Retail Investors Lose 2.3 Trillion Won on Leveraged Samsung, SK hynix Bets

Retail investors in South Korea realized over 2.3 trillion won (~$1.72 billion) in losses on single-stock leveraged ETPs within two and a half months of their May 27 launch. The 2x daily products tied to Samsung Electronics and SK hynix collapsed during the AI semiconductor correction; regulators suspended new listings from July 16.

• 2.32 trillion won in realized losses across 10 major brokers from May 27 to Aug 14
• KODEX SK hynix Single Stock Leverage fell 76% from its June 23 peak of 44,385 won
• Citigroup estimates Korean retail losses on leveraged ETFs could reach 56 trillion won
• New listings suspended since July 16; minimum deposit raised to 30 million won