South Korea's stock market is facing a major crisis stemming from single-stock leverage ETFs launched in May 2026. Investment inflows into these products exceeded 300 billion baht, and total fund assets surged to around 1.8 trillion baht before the daily reset mechanism amplified selling pressure during a market correction. This caused SK Hynix shares to plummet over 52 percent in a single month, with some leverage ETFs losing up to 84 percent of their value. Margin calls were triggered simultaneously across more than 1.22 million accounts, and forced portfolio liquidations affected roughly 320,000 to 360,000 accounts. Total losses are estimated at approximately 1.33 trillion baht. South Korean authorities have introduced emergency measures, suspending the issuance of new single-stock leverage ETFs, banning advertising, raising minimum investment requirements, and mandating that new investors complete training before investing. Meanwhile, the finance minister has publicly apologized for approving such products.
SK Hynix IncLeverage ETF crisis caused SK Hynix shares to plummet over 52% in a month due to forced liquidations.