South Korea's KOSPI Tumbles 9% on July 13, Rebounds 6% Amid Leveraged ETF Concerns

According to reports from major international investment banks, single-stock leveraged exchange-traded funds (ETFs) linked to Samsung Electronics and SK Hynix were identified as a key driver of South Korea's recent market volatility. On July 13, the KOSPI index fell 9%, with Samsung Electronics down 10.1% and SK Hynix down 17%. JP Morgan noted that leveraged ETFs amplify short-term volatility without affecting fundamentals, while Goldman Sachs attributed the decline to forced liquidations rather than weakened corporate earnings. On July 15, the KOSPI recovered over 6%, with both Samsung Electronics and SK Hynix rebounding sharply as institutional and foreign investors resumed buying.
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