Minister Apologizes as Korean Leveraged ETF Investors Nurse Heavy Losses Amid Chip Stock Rout The swift collapse of the South Korean stock market has left retail investors reeling after they bet big on chip stocks through single stock leveraged Exchange Traded Funds (ETFs).
The introduction of these products, touted as a way to supercharge returns, has become a cautionary tale about the dangers of unchecked speculation. Over 14 trillion won ($9.
7 billion) in net purchases by retail investors, compared to just 2 trillion won by foreign investors, was facilitated by a May 27 rule change allowing single stock leveraged ETFs that amplify daily movements.