▲AI PRISM* Customized Economic Briefing
*Editor's Note: 'AI PRISM' (Personalized Report & Insight Summarizing Media) is an AI-based personalized news recommendation and summary service developed with support from the Korea Press Foundation. It selects and provides six customized news items by reader type.
[Key Issue Briefing]
■ Concentration in Samsung-Hynix Leveraged ETFs: Just one week after launch, 14 single-stock leveraged ETFs recorded daily turnover of 1.09745 trillion won, more than 1.7 times the total turnover of existing domestic leveraged ETFs. While products from the two major asset managers, Samsung Asset Management (KODEX) and Mirae Asset Global Investments (TIGER), have far exceeded 1 trillion won in market capitalization, tracking error in products from smaller and mid-sized managers has soared to as much as 2.7%, raising real risks of investor losses.
■ Margin Call Liquidations Hit Yearly High: Despite a 28.4% rise in the KOSPI last month, forced liquidations against unsettled brokerage accounts reached 707.7 billion won, the highest level this year. After the KOSPI broke through the 8,000 mark and then plunged, investors who had bought on margin suffered heavy losses, with forced liquidations on May 20 alone reaching 145.8 billion won, the largest single-day figure since October 2023.
■ Retirement Pension Investment Shift: With retirement pension reserves surpassing 500 trillion won for the first time, ETF investments amounted to 48.7 trillion won, accounting for 40% of performance-based assets. The share of defined benefit (DB) plans has shrunk to 43.6%, while the share of IRP (Individual Retirement Pension) has expanded to 28.3%, indicating that retirement pensions are rapidly transitioning from "savings accounts" to "investment accounts."
[News of Interest to Financial Product Investors]
- Key Summary: One week after the launch of 14 single-stock leveraged ETFs based on Samsung Electronics (005930) and SK hynix (000660), their daily turnover reached 10.9745 trillion won, approximately 1.7 times the total turnover of existing domestic leveraged ETFs (6.23 trillion won). KODEX SK hynix Single Stock Leverage was the largest with a market capitalization of 2.2237 trillion won, and the two major managers, KODEX and TIGER, have formed an oligopoly structure dominating the market. In contrast, in products from smaller and mid-sized managers, liquidity providers (LPs) failed to match quotes, causing tracking errors of RISE Samsung Electronics Single Stock Leverage and PLUS Samsung Electronics Single Stock Leverage to soar to 2.36% and 2.15%, respectively. Even when investors correctly predict the direction of the underlying asset, they may incur losses due to tracking error, and in low-volume products, it is difficult to sell at desired prices.
- Key Summary: In May, forced liquidations against unsettled brokerage accounts totaled 707.7 billion won, a 28.5% surge from March (550.8 billion won) and the largest figure this year. After the KOSPI broke through the 8,000 mark intraday for the first time on May 15 and then plunged to 7,493.18, investors who had engaged in margin trading expecting further gains are estimated to have suffered widespread losses. Forced liquidations on May 20 alone reached 145.8 billion won, the largest daily figure since October 2023, when the Youngpoong Paper trading suspension occurred. Credit loan balances also rose 5.5% from end-April to 37.6811 trillion won, suggesting that total liquidations including credit loan forced sales beyond margin trading would be even larger.
3. With KOSDAQ Sidelined, Authorities Seek Market Revitalization Measures
- Key Summary: The Financial Services Commission (FSC) decided to summon securities firms' KOSDAQ market officials on the 4th to discuss the current state of the KOSDAQ and revitalization measures. While the KOSPI has risen 109% this year, the KOSDAQ has gained only 11%, with the gap between the two markets widening noticeably. The KOSDAQ rose to 1,172.52 on expectations for the National Growth Fund but then declined for five consecutive trading days to 1,026.03. According to a Samsung Securities (016360) report, the KOSDAQ's 12-month forward price-to-earnings ratio (P/E, share price divided by earnings per share) stands at 27.4 times, far above the 10-year average of 17 times, indicating lower valuation appeal compared with the KOSPI (8.0 times). With the boom centered on large semiconductor stocks and the emergence of Samsung-Hynix leveraged products, retail funds are flowing out of the KOSDAQ, and authorities are reviewing concerns that the currently pursued KOSDAQ two-tier system alone may be insufficient for revitalization.
[Reference News for Financial Product Investors]
4. Bond-Mixed ETFs Targeting Retirement Pension Accounts Surge…Net Assets Top 12 Trillion Won
- Key Summary: Net assets under management (AUM) of domestic bond-mixed ETFs grew from 1.7214 trillion won at the end of 2024 to 4.6341 trillion won at the end of 2025, and surged to 12.4014 trillion won as of the 2nd of this month. Under current rules, defined contribution (DC) retirement pensions and IRPs (Individual Retirement Pensions) are limited to 70% in risky asset investments, but bond-mixed ETFs with stock allocations under 50% are classified as safe assets. By utilizing them, the overall stock investment ratio in an account can be raised to as much as 85%. KB Asset Management's 'RISE Samsung Electronics SK hynix Bond Mixed 50' surpassed 3 trillion won in net assets just three months after listing, and 'KODEX Samsung Electronics SK hynix Bond Mixed 50,' listed in April this year, attracted 384.7 billion won in inflows in just one month. Investment targets are also rapidly diversifying, including silver physical and government bond mixes, and KOSDAQ 150 and short-term government bond mixes.
5. "It's a Waste to Leave It Like a Deposit"…Retirement Pensions Now Directly Managed Through ETFs
- Key Summary: As retirement pension reserves surpassed 501.4 trillion won for the first time at the end of last year, ETF investments stood at 48.7 trillion won, accounting for about 40% of performance-based assets. Having more than doubled for three consecutive years, the market is projected to expand to 100 trillion won within the year. The share of DB (defined benefit) plans shrank from 49.7% in 2024 to 43.6% in the first quarter of this year, while the IRP share expanded from 22.9% to 28.3% over the same period. IRP reserves last year reached 130.9 trillion won, up 32.6% from the previous year, the highest growth rate among retirement pension types. With the retirement pension in-kind transfer system introduced in 2024 enabling existing products to be transferred to other financial firms without liquidation, the movement of subscribers seeking active asset management is also increasing. Meanwhile, the tax deferral effect, which allows dividend income tax to be postponed until pension receipt when investing in overseas index ETFs, is also cited as an attractive factor for investors.
6. KOSPI Rises but Brokerage Stocks Lag…First Decoupling This Year
- Key Summary: While the KOSPI rose 28.45% last month, the KRX Securities Index fell 4.34%, marking the first decoupling phenomenon this year in which the KOSPI and the securities index moved in opposite directions. While Samsung Electronics shares surged 36.6% and SK hynix soared 61.2% over the month, major brokerage stocks including Mirae Asset Securities (006800) (-12.3%), Samsung Securities (-13.1%), Kiwoom Securities (039490) (-12.3%), and NH Investment & Securities (005940) (-17.1%) all declined. With the semiconductor-centered concentrated market drawing funds to AI, semiconductor, and humanoid-related stocks, the spillover of liquidity into the brokerage sector has been limited. Daishin Securities (003540) analyzed that the brokerage stock weakness largely reflects the first quarter pre-pricing in a full year's worth of earnings, with the typical pattern of brokerage earnings being front-loaded (high in the first half, low in the second half) also serving as a contributing factor.
▶Read the article: Retail Margin Investors Cry Out in Volatile Market…May Forced Liquidations of 707.7 Billion Won, Highest This Year
▶Read the article: 500 Trillion Won Retirement Pension, Who Owns It?
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