South Korea sees leveraged ETF surge on Samsung, SK Hynix
South Korea's stock market is buzzing thanks to leveraged ETFs tied to AI chip giants Samsung Electronics and SK Hynix.
One ETF focused on SK Hynix saw its assets jump 20-fold this year, and a Hong Kong-listed fund has hit a massive $6.6 billion, making it the biggest single-stock leveraged ETF in the world.
These funds promise bigger daily returns by using derivatives, but that also means wilder price swings and more risk.
KOSPI volatility jumps, regulators curb promotions
With Samsung and SK Hynix making up more than 80% of KOSPI's trading volume on peak days, volatility has soared, pushing the KOSPI Volatility Index from 28.85 at the end of 2025 to 89 on Thursday (July 16, 2026).
Regulators admit they rushed approvals to attract retail investors back from US markets, but now they are banning promotions and slowing new launches to keep things stable.
Despite concerns, investor interest in AI semiconductor stocks keeps growing as more people chase high-risk, high-reward opportunities.