South Korea finance minister apologizes as retail investors suffer heavy losses on leveraged chip ETFs

Published Jul 29, 07:01 AM UTC

South Korea's Finance Minister Koo Yun-cheol apologized on July 29, 2026, after retail investors suffered severe losses from single-stock leveraged ETFs introduced in May 2026. The products, tied to chip giants Samsung Electronics and SK Hynix, saw massive retail inflows of 14 trillion won ($9.7 billion) compared to 2 trillion won from foreign investors. However, a sharp downturn in chip stocks caused the KODEX SK Hynix Single Stock Leverage ETF to fall over 80% from its June peak, and the Samsung equivalent dropped nearly 75%. The Kospi index plunged about 35% in the last month. The Financial Services Commission is considering restricting these products to professional investors only and potentially lowering the leverage multiple from 2x to reduce volatility. The minister admitted the products were introduced without careful consideration.