Lates News

The South Korean stock market has recently experienced extreme volatility, and leveraged ETFs linked to Samsung Electronics and SK Hynix have amplified selling pressure. This year, the Korea Exchange has halted trading 37 times, with more than half occurring after the introduction of single-stock leveraged products in May. Namuh Rhee, chairman of the Korean Corporate Governance Forum, said, "The storage chip business has highly cyclical and unpredictable demand. Allowing retail investors to use double leverage in this area is a serious policy mistake." The unique aspect of South Korea is the large scale of retail investor participation and the rapid approval of single-stock derivative products by regulatory agencies. Kim Hyung-kyoon, managing director of Tcha Partners, said, "It is difficult to understand why regulatory agencies would approve these products after the market has already risen so much. They have essentially created a casino for retail investors."