Samsung Electronics·SK Hynix leveraged ETFs plunge sharply in a week

As the domestic stock market has entered a correction phase, losses in singlestock leveraged ETFs that track Samsung Electronics and SK Hynix stock prices twofold are rapidly widening. As of July 8, when the two stocks fell by around 5% each, 14 related ETFs also posted declines at roughly twice that level. According to data from the Korea Exchange and Koscom, the prices of seven Samsung Electronics leveraged ETFs and seven SK Hynix leveraged ETFs have fallen sharply over the past week, and current prices for all of them are below the listing price of 20,000 won. During this period, about 3 trillion won in funds flowed into leveraged products, but with the underlying assets plunging contrary to expectations, investors' losses widened. The financial authorities are reviewing response measures to protect investors and ease market volatility. Criticism over the side effects of singlestock leveraged ETFs is also continuing in political circles, and the Financial Supervisory Service and related ministries are expected to hold further discussions through meetings with asset managers.