Leverage needs more rules not just in Korea but US too. Chip drop looks like profit taking after insane gains.
- South Korea Financial Services Commission suspends new listings of leveraged products tied to individual stocks.
- Move follows more than a dozen ETFs for 2x daily returns on Samsung Electronics and SK Hynix.
- Regulators concerned about large daily trades amplifying volatility.
- New rules raise minimum account balance and trade size plus required training.
- Existing ETFs stay allowed.
- Chip stocks down 30-40% in recent period despite bullish earnings from Micron ASML TSMC.
- Possible reasons include profit taking overcrowded trade and leverage effects.
Reuters on South Korea toughens rules on single stock leveraged ETFs (July 16 2026): https://www.reuters.com/world/south-korea-toughens-regulations-single-stock-leveraged-etfs-2026-07-16/
Channel News Asia on regulator announcing new measures: https://www.channelnewsasia.com/business/south-korea-regulator-announce-new-measures-single-stock-leveraged-etfs-6257376