Korean retail investors are reported to have lost about 2.3 trillion won (around $1.7 billion) in leveraged exchange-traded products linked to South Korea’s two major chipmaking companies within months, according to a lawmaker’s office. The disclosure is described as the first indication of the scale of risks faced by investors using these products.
The ETFs, which track single stocks through leverage, are said to have launched in May. NDTV reports that they increase market volatility in Korea’s largely AI-driven equities market. The products have also been linked to periods of sharp price swings, with some investors initially benefiting as the AI-related sector rises, before losses mount when conditions reverse. Bloomberg similarly focuses on the reported magnitude of losses, framing it as an early datapoint on potential downside risks from leveraged exposure.
Across the coverage, the key common thread is the timing (shortly after the May launch), the affected assets (leveraged products tied to two chip firms), and the reported investor losses. Differences are mainly in emphasis: Bloomberg highlights the reported total losses, while NDTV adds detail on how the products may amplify volatility in the broader market.
