'Give me my money back': South Korean traders' leveraged SK Hynix, Samsung bets unravel after selloff - CNBC

What the report says

CNBC reported that South Korean retail traders are facing large losses after leveraged bets linked to Samsung Electronics and SK Hynix reversed sharply following a powerful AI-related semiconductor rally. The losses have been concentrated in single-stock leveraged exchange-traded funds, products that magnify daily moves in an individual company’s shares and can deepen losses when the underlying stock falls.

According to CNBC, Korean retail investors have bought a net 14 trillion won, or about $9.4 billion, of single-stock leveraged ETFs since their May 27 launch, citing KB Financial Group. Foreign investors bought about 2 trillion won over the same period. LSEG data cited by CNBC showed the KODEX SK Hynix Single Stock Leverage ETF, designed to deliver twice the daily move in SK Hynix, had dropped about 70% from a June peak and roughly 50% from its launch level.

The selloff has drawn attention from policymakers and analysts because retail leverage can intensify market swings. CNBC cited a recent Bank of Korea report warning that leveraged stock investing by individuals had reached a record high, driven by margin borrowing and concentrated semiconductor exposure, while also saying it was not likely to threaten the financial system overall. Oxford Economics data cited in the report showed assets in the 25 largest leveraged Korea ETFs rose to about 30% of Korea-focused fund assets by June, up from about 15% at the start of 2026.

South Korea has introduced tougher rules for these products, CNBC reported, including raising the cash requirement for investors to 30 million won from an effective 3 million won. Analysts quoted by CNBC said the episode shows how quickly speculative positioning can unwind, even if the longer-term outlook for memory-chip makers remains debated.