Svmuu News: South Korean retail investors who made leveraged bets on AI have suffered massive losses following a sharp market reversal, exposing the risks associated with the speculative trading frenzy. Investors holding single-stock leveraged ETFs linked to Samsung Electronics and SK Hynix have suffered particularly heavy losses. According to data from KB Financial Group, since the launch of single-stock leveraged ETFs on May 27, South Korean retail investors have made net purchases totaling 14 trillion won (approximately $9.4 billion), while foreign investors have purchased about 2 trillion won worth of these funds. Currently, the situation is not looking good for them. According to LSEG data, the KODEX SK Hynix Leveraged ETF—which doubles the return on SK Hynix’s stock price—has fallen about 70% from its June high and has declined by about 50% since its launch.
One investor wrote on a South Korean online trading forum: “I wish I could go back to before I started investing in stocks. Give me my money back.” (CNBC)