Korean circuit breaker triggered? South Korean regulators are concerned about the risk of retail investors chasing leveraged ETFs focused on Samsung and SK Hynix and are considering separate measures.

Odaily Planet Daily News South Korean Financial Supervisory Service (FSS) Governor Lee Chan-jin recently stated that the authority is considering introducing separate stabilization measures for single-stock leveraged ETFs. At a press conference held on June 22, 2026, Lee Chan-jin said that the negative effects of single-stock leveraged ETFs have intensified. In addition to strengthening the monitoring of trading activities, regulators are also considering other market stabilization measures to hedge against the chain risks that may arise from the sharp fluctuations of single-stock leveraged ETFs tracking SK Hynix and Samsung Electronics. Lee Chan-jin stated, "I am deeply concerned that ordinary investors have difficulty obtaining substantive returns, while the profits and dividends are all pocketed by the operating institutions."

On May 27, 2026, single-stock leveraged ETFs backed by Samsung Electronics and SK Hynix were listed on the local Korean exchange, attracting a massive influx of market funds. According to statistics from the Financial Supervisory Service, the total market capitalization of these single-stock leveraged ETFs has doubled from 4.5 trillion won on the listing day to 9.6 trillion won on June 12. The average daily turnover rate of these single-stock leveraged ETFs reaches 122.5%, far higher than the 30.2% turnover rate of other leveraged and inverse ETFs. (Caixin)

Possibly affected by this news, South Korea's KOSPI index once plummeted 7% today, triggering a circuit breaker.