# Tighter Rules on Leveraged Chip ETFs Draw Anger From the Investors They Protect

> Regulators raised the minimum deposit to 30 million won and halted new launches after leveraged funds tracking Samsung Electronics and SK hynix fell roughly twice as fast as the shares themselves. Retail investors say the cost of the correction is landing on them alone.

- Source: Korea First
- Canonical URL: https://koreafirst.tv/article/leveraged-chip-etf-backlash-tighter-rules
- Author: Korea First Staff
- Section: Money
- Published: 2026-07-20T09:30:00.000Z
- Updated: 2026-07-20T09:30:00.000Z
- Tags: ETFs, Samsung Electronics, SK hynix, Financial Services Commission, Retail Investors

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Sixteen single-stock leveraged exchange traded funds tied to Samsung Electronics and SK hynix arrived in May and drew more than 13 trillion won in trading value. Two months later they have become the subject of an argument between retail investors and the regulators who have just made the products harder to buy.

## The losses

The maths of leverage did what leverage does. Over one month Samsung Electronics shares fell 24.3 percent and SK hynix fell 19.5 percent, declines that were painful but survivable. The leveraged funds built on them fell 48.4 percent and 45.6 percent, close to double the move in the underlying stocks.

One investor described losing close to 60 percent on the products.

## What changed

On July 17 the Financial Services Commission and the Financial Supervisory Service tightened the terms of access. The minimum deposit rose from 10 million won to 30 million won, about 20,200 dollars. That deposit must now be funded entirely in cash, where previously up to 70 percent could be covered by existing stock holdings. The minimum order size went from a single unit to 20.

Regulators also halted new product launches for the time being and banned advertising for the funds already trading.

## The complaint

The objection from retail investors is not that the products are safe. It is that the response arrived after the losses and falls entirely on the people buying, rather than on the conditions that let a wave of leveraged single-stock funds launch into a volatile chip market in the first place. The recurring question in investor forums is why the penalty applies only to them.

Delisting the funds is not on the table. Kim Yong-beom, the presidential chief of staff, ruled it out, arguing that pulling products which have grown this fast could itself disrupt the market.

## Next

Lawmakers have asked for stronger monitoring and for consultation before any further regulatory steps, which leaves the current restrictions in place and the underlying question of who bears the risk unresolved.

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Originally published by Korea First. Free to cite with attribution and a link to https://koreafirst.tv/article/leveraged-chip-etf-backlash-tighter-rules.
