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#SamsungSKHynixLeveragedETFsStokeKoreaVolatility
The Korean market has turned into a casino: Samsung and SK Hynix, along with their 2x leveraged ETF products, account for more than 70% of all trading volume in the country. KOSPI volatility this year has exceeded 60% — higher than bitcoin.
What’s the problem? Leveraged ETFs, launched at the end of May, rebalance every day: when stocks rise, they buy more; when they fall, they sell. This creates an artificial “short gamma effect” that amplifies any market move rather than creating a trend.
Result: #KODEX SK Hynix 2x ETF has fallen 70% from its June highs; retail investors have lost trillions of won; regulators have already stopped new listings of such ETFs and raised the minimum deposit to $20,000.
SK #Hynix shares are falling 13–14% in a day, #Samsung is down 34% from its peak — these are not fundamental problems, but a structural failure caused by a regulatory mistake. Note that the ultra-volatility of Korean chips could also affect the crypto market.
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The Korean market has turned into a casino: Samsung and SK Hynix, along with their 2x leveraged ETF products, account for more than 70% of all trading volume in the country. KOSPI volatility this year has exceeded 60% — higher than bitcoin.
What’s the problem? Leveraged ETFs, launched at the end of May, rebalance every day: when stocks rise, they buy more; when they fall, they sell. This creates an artificial “short gamma effect” that amplifies any market move rather than creating a trend.
Result: #KODEX SK Hynix 2x ETF has fallen 70% from its June highs; retail investors have lost trillions of won; regulators have already stopped new listings of such ETFs and raised the minimum deposit to $20,000.
SK #Hynix shares are falling 13–14% in a day, #Samsung is down 34% from its peak — these are not fundamental problems, but a structural failure caused by a regulatory mistake. Note that the ultra-volatility of Korean chips could also affect the crypto market.
Subscribe so you don’t miss the analysis! 👇
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