Retail Investors Surge Single-Stock Leveraged ETF Purchases on July 20 Despite Regulatory Curbs, KODEX SK Hynix Hits 122.1 Billion Won

According to Yonhap Infomax, on July 20, retail investors continued to pour massive funds into single-stock leveraged ETFs despite South Korea's financial regulator announcing strict restrictions on July 16. KODEX SK Hynix single-stock leveraged ETF received 122.1 billion won in net purchases in a single day, while KODEX Samsung Electronics variant absorbed 57.6 billion won, bringing combined inflows to approximately 180 billion won.

The Financial Services Commission aims to curb leveraged ETF demand by raising minimum deposits to 30 million won and eliminating collateral securities, with implementation scheduled for August 5 and August 19 respectively. The regulator expects single-stock leveraged ETF market capitalization to contract from current 12 trillion won to 4–5 trillion won once restrictions take full effect.