South Korean retail investors face steep losses in leveraged bets on Samsung Electronics, SK Hynix

According to CNBC, South Korean retail investors who piled into leveraged exchange-traded funds linked to Samsung Electronics and SK Hynix are facing steep losses after the two chipmakers reversed sharply. Since the launch of single-stock leveraged ETFs on May 27, Korean retail investors have bought a net 14 trillion won, or $9.4 billion, of the products, compared with about 2 trillion won from foreign investors, according to KB Financial Group. The KODEX SK Hynix Single Stock Leverage ETF has fallen about 70% from its June record high and is down roughly 50% from its debut, based on LSEG data. South Korea on Thursday introduced tougher rules for single-stock leveraged ETFs, requiring investors to post at least 30 million won in cash, up from an effective 3 million won previously.