The Bank of Korea warns that single-leveraged ETFs for Samsung Electronics and SK Hynix amplify stock market risks.

According to documents submitted by the Bank of Korea to the National Assembly, single-stock leveraged ETFs targeting Samsung Electronics and SK Hynix have expanded rapidly. The market value share of these two companies has risen from about 36.1% at the end of last year to more than 55%, while their turnover share has increased from 27.9% to 63.5%. The Bank of Korea warned that this phenomenon amplifies structural risks and volatility in the Korean stock market. Korean financial regulators emphasized the need to monitor the impact of these products on market stability and systemic risk, noting that single-stock leveraged ETFs exacerbate one-way capital flows amid changes in market sentiment and, during a market reversal, the combination of intraday rebalancing and derivatives hedging mechanisms amplify price fluctuations.