KOSPI 8% Drop Sparks Calls to Ban Samsung and SK Hynix Leveraged ETFs

Retail investors protest outside National Assembly demanding abolition of single-stock leveraged ETFs after KOSPI circuit breaker and 25% product losses.

Woofun AI reports that approximately 30 mourning wreaths were placed at the Seoul National Assembly by the "Stock Market Normalization Conference", demanding the removal of Samsung Electronics and SK Hynix 2x leveraged ETFs. The protest follows a KOSPI decline of over 8% which triggered a circuit breaker, causing the targeted leveraged products to plummet by roughly 25%. The group argues these instruments amplified volatility and exacerbated retail losses amid the semiconductor sector downturn.

In response, the Financial Services Commission will enforce a 30 million Korean Won cash margin requirement for new or added positions in single-stock leveraged products starting July 31st. Chairman Lee Eung-tae indicated that industry insiders expect trading accounts to drop from 100,000 to 10,000, with trading volume decreasing by approximately 60%.