Minister apologizes as Korean leveraged ETF investors nurse heavy losses amid chip stock rout - CNBC

South Korea’s finance minister apologized for significant losses suffered by retail investors in leveraged exchange-traded funds (ETFs), following a sharp correction in the country’s stock market. Int... Read original →

The recent crash in South Korean chip stocks, triggered by the cooling of the AI-driven semiconductor rally, has exposed systemic risks within leveraged ETF investments. Technologically, upstream materials and equipment firms face declining demand, while downstream packaging and testing companies are also affected. Regulators are tightening access to leveraged products, which will impact financial innovation and market liquidity. From a competitive standpoint, global semiconductor supply chains are shifting, and Korean firms must manage retail investor risks to maintain edge in high-end manufacturing. Over the next 12–24 months, market volatility is expected to persist, with regulators pushing for more prudent investment practices and risk management frameworks.