Latest Update on Korea Exchanges 0729

English summary

Today, memory leaders fell, causing significant adjustments in the Korean stock market. We are currently communicating with Korean investment institutions on-site in Seoul; sharing the latest views: 1. The main reason for the decline is believed to be the deleveraging effect of leveraged products on individual stocks. Currently, there are 14 leveraged products with total scale 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 leads to higher investment thresholds. 2. Individual investors' loss rate is currently very high. The government is considering next measures; it may possibly ban ordinary individual investors from purchasing double-leverage products on individual stocks, restricting them to institutional investors/ultra-high-net-worth individual clients, but specifics await policy details. The Korean Finance Minister apologized for the imprudence of launching such products. 3. The popularity of such ETF products is due to significantly lowering the threshold for buying SK Hynix and Samsung. 4.…