1. According to JPMorgan Chase data, the total assets under management (AUM) of margin financing and leveraged ETFs in South Korea are not particularly large. However, in terms of the proportion of total stock market capitalization, South Korea's leveraged ETFs are significantly higher, exceeding the proportion of margin financing among the four countries. In comparison, China, the US, and Japan all have higher proportions of margin financing.
2. South Korea is a bellwether for AI hardware trading sentiment this year. The recent global AI sector crash was triggered by South Korea's deleveraging. JPMorgan Chase predicts that net foreign selling of South Korean stocks this year will exceed $110 billion, but about 90% of this is concentrated in memory semiconductor stocks. With the recent decline in the weighting of memory stocks, the selling pressure from foreign investors is gradually easing.
