South Korean equities have seen extreme volatility, with single-stock leveraged
ETFs linked to Samsung Electronics and SK Hynix amplifying sell pressure. The
Korea Exchange logged 37 trading halts year-to-date, more than half occurring
after the May launch of single-stock leveraged products. Chairman of the Korea
Corporate Governance Forum Namuh Rhee said: "Storage-chip businesses are highly
cyclical and demand is hard to predict; allowing retail investors to use 2x
leverage in this area is a serious policy mistake." Tcha Partners executive
director Kim Hyung-kyoon said regulators moved too quickly to approve the
products after a large market run, adding "they have effectively created a
casino for retail investors."
