Korean Retail Investors Flock to Single-Stock Leveraged ETFs, Exchanges and Brokerages Rake in Over 100 Billion KRW in Fees in Two Months

Odaily News – Since the listing of single-stock leveraged and inverse ETFs tracking Samsung Electronics and SK Hynix, the Korea Exchange and various brokerages have accumulated over 117 billion KRW in fee income in more than two months. Some observers point out that while retail investors have flocked to these high-risk products, the exchange responsible for market operations and brokerages providing trading intermediary services have reaped substantial fees. 

According to data obtained from the Financial Supervisory Service and the Korea Exchange on the 17th, single-stock leveraged and inverse ETFs related to Samsung Electronics and SK Hynix generated combined fees of 117.26 billion KRW for the exchange and brokerages from their listing on May 27 through the end of last month, with a total of 16 related products. On active trading days, the exchange's single-day fee income alone exceeded 1 billion KRW. On June 24, fee income reached 1.051 billion KRW, and on the 14th of last month, it hit 1.011 billion KRW.