Prof G Markets · Monday, August 3, 2026
The South Korean stock market experienced significant volatility, with the Kospi index falling 22% and then rising 15% in a single week. This instability is largely attributed to the recent introduction of single-stock leveraged ETFs, which multiply the daily returns of chipmakers like Samsung and SK Hynix.
“There's been an enormous amount of volatility in the South Korean stock market.”
“The Kospi index fell 22%. And then days later it rose 15%.”
“One of the biggest culprits appears to be a new wave of leveraged ETFs.”
“These funds use borrowed money to multiply the daily return of their target by two, three, or even five times.”