South Korea weighs separate stabilization steps for single-stock leveraged ETFs tied to Samsung, SK Hynix

South Korean regulators are weighing stand-alone stabilization measures for single-stock leveraged exchange-traded funds, following growing concerns over volatility in products linked to Samsung Electronics and SK Hynix. Lee Chanjin, president of the Financial Supervisory Service (FSS), said at a June 22, 2026 press briefing that the negative spillovers from single-stock leveraged ETFs have been worsening. Alongside tighter monitoring of trading activity, authorities are studying additional market-stabilizing tools to curb potential cascade risks stemming from extreme price swings in leveraged ETFs tracking the two chipmakers. Lee said he is "deeply concerned" that retail investors find it difficult to earn meaningful returns while "all the profit benefits are captured by the operating institutions." Single-stock leveraged ETFs tracking Samsung Electronics and SK Hynix began trading on South Korea's local exchange on May 27, 2026, attracting heavy inflows. FSS data show the combined market value of these products more than doubled, rising from KRW 4.5 trillion on the listing day to KRW 9.6 trillion by June 12. Their average daily turnover rate hit 122.5%, far above the 30.2% seen in other leveraged and inverse ETFs. (Caixin) The news weighed on local equities. South Korea's KOSPI fell as much as 7% on the day, triggering a circuit breaker.