Minister apologizes as Korean leveraged ETF investors nurse heavy losses amid chip stock rout

📰 source: cnbc_topnews · 💼 business

south korea's finance minister koo yun-cheol apologized wednesday after retail investors lost heavily on single-stock leveraged etfs. the products were introduced may 27 and saw retail investors pile in with net purchases of 14 trillion won, vs 2 trillion won from foreigners. the kospi has plunged almost 35% over the last month led by a downturn in chip stocks. the kodex sk hynix single stock leverage etf has fallen more than 80% from its june 23 peak, while the samsung version dropped almost 75% from its june 3 peak. the regulator said it may restrict access to professional investors or lower the leverage multiple.

why it matters: risk of leveraged etfs exposed as retail investors lose billions on chip stock bets, prompting regulatory rethink in south korea.

source: cnbc_topnews
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