Leveraged ETFs Draw 3 Trillion Won in One Month as Retail Investors Ramp Up High-Risk Bets

*Editor's Note: 'AI PRISM' (Personalized Report & Insight Summarizing Media) is an AI-based customized news recommendation and summary service developed with support from the Korea Press Foundation. It selects and provides six tailored news items for each reader type.

1. Leveraged ETFs Draw 3 Trillion Won in a Month — Retail Investors' Risky Bet

- Key Summary: A net 3.13 trillion won flowed into domestic and overseas leveraged ETFs over the past month, reflecting a sharp increase in aggressive retail bets. Investors poured $493.5 million into SOXL and $201.16 million into KORU, while domestically, 1.1621 trillion won flooded into KODEX Leverage. KOSPI triggered sidecar circuit breakers — both on the sell and buy sides — ten times this month alone, underscoring the extreme volatility. Analysts warn that amid spreading FOMO sentiment, leveraged products can rapidly amplify losses, calling for a cautious approach.

2. SK hynix to Purchase 12 Trillion Won in EUV Equipment, Accelerating Advanced Process Transition

- Key Summary: SK hynix (000660.KS) disclosed that it will acquire EUV scanners worth 11.9497 trillion won from ASML. At an estimated 300 billion won per unit, the purchase amounts to roughly 40 machines. While Samsung Electronics (005930.KS) has applied 1c-nanometer processes for HBM4, SK hynix has remained at the 1b node, making this investment a move to close the process gap. Combined with the early activation of Cheongju M15X Phase 2 clean rooms and the Yongin fab buildout, the investment is expected to significantly strengthen SK hynix's competitiveness in AI memory.

3. Active ETFs Expand Rapidly, Targeting Exports and Strategic Industries

- Key Summary: Hanwha Asset Management listed the 'PLUS K Manufacturing Core Companies Active ETF,' and Korea Investment Management announced the upcoming launch of the 'ACE K Export Core TOP 10 Industry Active ETF,' intensifying competition in industrial and export-themed products. Active ETF net assets surged from 59 trillion won in 2024 to 98 trillion won this year. Financial authorities plan to permit 'fully active ETFs' without index requirements within the first half, a move expected to accelerate market expansion. However, the Financial Supervisory Service has urged restraint regarding market impact from ETF rebalancing and the practice of pre-disclosing portfolio holdings, and has begun reviewing institutional improvements.

4. L&F (066970.KS) Signs 1.6 Trillion Won LFP Cathode Supply Deal with Samsung SDI (006400.KS)

- Key Summary: L&F (066970.KS) signed a mid-to-long-term supply contract worth 1.6 trillion won with Samsung SDI (006400.KS) for lithium iron phosphate (LFP) cathode materials. The deal covers confirmed volumes from 2027 to 2029 with additional options for the following three years. It is regarded as strategically significant as the first large-scale LFP cathode supply agreement by a non-Chinese company. With the global ESS battery market projected to double from $50.8 billion in 2025 to $106 billion by 2030, the deal signals the beginning of tangible benefits from the restructuring of supply chains away from China. L&F plans to complete Phase 1 facilities in April this year and begin mass production in the third quarter, while also exploring additional customer acquisitions.

5. U.S. Private Credit Fund Run Is Not Somebody Else's Problem — Shin Hyun-song's Prescription

- Key Summary: Redemption requests are surging at U.S. private credit funds, spreading anxiety across global financial markets. Shin Hyun-song, nominee for Bank of Korea governor, has consistently warned of liquidity crises originating from non-bank financial institutions, defining them as an "invisible bank run." With domestic NBFI assets reaching 6,213 trillion won — approximately 2.4 times GDP — observers note that Korea is not immune. Analysts argue that Korea must prepare for the possibility that non-bank risks including real estate project financing, issued notes, and Investment Management Accounts (IMAs) could spread across the broader financial market depending on economic conditions.

6. Retail Investors Buy 26 Trillion Won to Defend KOSPI as Foreigners Sell 22 Trillion Won

- Key Summary: Retail investors net purchased 26.2508 trillion won on the main KOSPI market in March, on pace to set an all-time monthly record. Individual investors effectively propped up the market floor while foreign investors dumped 22.2577 trillion won. However, eight of the top 10 stocks by retail net purchases posted negative returns, reflecting poor investment performance. Analysts note that since earnings deterioration has not been confirmed — independent of external variables such as war and oil prices — a dollar-cost averaging strategy remains valid.