South Korean Index Circuit Breaker Triggered? Regulator Targets Retail FOMO in Samsung & SK Hynix Leveraged ETFs, Considers Separate Measures

Odaily Planet Daily News Recently, Lee Chan-jin, Governor of the Financial Supervisory Service of South Korea, stated that authorities are considering adopting separate stabilization measures for single-stock leveraged ETFs. At a press conference held on June 22, 2026, Lee Chan-jin said the negative effects of single-stock leveraged ETFs have intensified. Beyond strengthening the monitoring of trading behavior, regulators are also considering other market stabilization measures to hedge against the cascading risks that may arise from the volatile swings of leveraged ETFs tracking SK Hynix and Samsung Electronics. Lee Chan-jin stated, "I am deeply concerned that ordinary investors find it difficult to achieve substantial returns, while profits are entirely captured by the operating institutions."

On May 27, 2026, single-stock leveraged ETFs with Samsung Electronics and SK Hynix as underlying assets were listed on the local South Korean exchange, attracting a massive influx of market funds. According to statistics from the FSS, the total market capitalization of these single-stock leveraged ETFs doubled from 4.5 trillion won on their listing day to 9.6 trillion won by June 12. The average daily turnover rate for these ETFs reached a staggering 122.5%, far exceeding 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.