Retail investors who bet on falling prices suffered heavy losses in a single day on the 15th, as shares of Samsung Electronics (005930.KS) and SK hynix (000660.KS) surged. As the volatility of single-stock leveraged and inverse exchange-traded funds (ETFs) came back into focus, President Lee Jae-myung directed the government to prepare supplementary measures.
Investors Betting on Declines Face Backlash, Double-Digit Losses in a Day
According to the Korea Exchange (KRX) and Koscom's CHECK system on the 15th, retail investors on the previous day net purchased 67 billion won worth of the 'SOL SK hynix Futures Single-Stock Inverse 2X' and 90.3 billion won worth of the 'PLUS Samsung Electronics Futures Single-Stock Inverse 2X.' The two products are so-called "double-inverse" ETFs that track twice the returns when SK hynix and Samsung Electronics shares fall, respectively.
By contrast, retail investors net sold 1.0647 trillion won worth of seven types of SK hynix single-stock leveraged ETFs and 71.2 billion won worth of seven types of Samsung Electronics single-stock leveraged ETFs. As the recent correction in semiconductor stocks continued, investors are believed to have weighted the possibility of further declines, clearing out leveraged products and moving funds into inverse products.
However, the market moved contrary to expectations. As Samsung Electronics and SK hynix surged more than 7% and more than 10% intraday, respectively, the double-inverse ETFs fell sharply. As of the afternoon on the 15th, the 'SOL SK hynix Futures Single-Stock Inverse 2X' fell more than 20%, while the 'PLUS Samsung Electronics Futures Single-Stock Inverse 2X' also recorded a double-digit decline rate.
Investors who switched to inverse products to recover losses from the previous day's declining market thus suffered heavy losses again in a single day. Posts appeared one after another on investor communities: "The trend changed as soon as I bought," "I thought the declining market would continue further, but I got stuck in inverse products," and "I tried to recover losses but they grew even bigger."
President Orders "Measures Prepared," Single-Stock ETFs to Be Overhauled
As criticism continues that single-stock leveraged and inverse ETFs have recently increased volatility in the domestic stock market, the government's discussion on system improvement is also gaining momentum.
At the "2026 Second-Half Ministry Work Report" held at the Blue House State Guest House on the 15th, President Lee Jae-myung told Korea Exchange Chairman Jeong Eun-bo, "It's noisy because of (single-stock leveraged) ETFs, isn't it?" and directed, "Prepare supplementary measures quickly."
President Lee also mentioned to Financial Supervisory Service Governor Lee Chan-jin, "It seems investors have been hit hard recently because of Samsung Electronics and SK hynix leveraged ETFs," to which Governor Lee replied, "As a market manager, I take the responsibility heavily."
The government is already closely examining the market impact of single-stock leveraged ETFs. Kim Yong-beom, head of the Presidential Office's policy office, said at the F4 meeting on the 10th — attended by the Ministry of Economy and Finance, the Financial Services Commission, the Financial Supervisory Service, and the Bank of Korea — that they were carefully reviewing the market impact and would prepare supplementary measures if necessary.
With the president publicly requesting swift preparation of measures, discussions on system improvement surrounding single-stock leveraged and inverse ETFs are expected to gain further momentum.
