Latest Korea Exchange Situation Report 0729

English summary

Today's decline in memory leaders led to a significant adjustment in the Korean stock market. We are currently communicating with Korean investment institutions on-site in Seoul. Latest views to share: 1. # The main reason for the decline is believed to be the deleveraging negative effect from individual leveraged products. Currently, there are 14 leveraged products with a total size of KRW 20-25 trillion. SK Hynix accounts for about 60% of such products, while Samsung is relatively less. SK Hynix's high stock price makes the investment threshold relatively high. 2. Personal loss rates are currently very high. The government is considering the next measures. # In the future, it may be possible to ban ordinary individual investors from purchasing double-leveraged individual stock products, limiting them to institutional investors/ultra-high-net-worth individual clients, but specifics still await policy details. # The Korean Finance Minister apologized on the same day for being cautious in launching such products. 3. # The popularity of such ETF products is due to significantly lowering the threshold for buying SK Hynix and Samsung. 4.…