#singlestockleveragedetfs — Public Fediverse posts

Cautionary tale for the ages & much of interest to other markets in this ABC (Australian broadcaster) piece on the apparently sudden collapse of the S Korean market: “According to KB Financial Group, South Korean retail investors have made net purchases of around 14 trillion won ($US9.7 billion) in single-stock leveraged ETFs since their launch, with foreigners tipping in roughly 2 trillion won ($US1.4 billion). [Note that the value of the 2 major chipmakers had risen to make up 60 per cent of the market’s total value by last month.]

“South Korean leaders are scrambling as the worsening situation threatens further instability, with the main opposition, the People Power Party's Lee Jongwook, going on the attack.

“"When I think about it now, these products should never have been allowed on to the market. I consider this a policy failure," Mr Lee said.”

And: “According to data from Goldman Sachs, as of a fortnight ago, more than 1.2 million retail investors who had borrowed cash to take part in the frenzy had received what is known as "margin calls".

“With losses overwhelming their collateral, they have been told to stump up extra cash to maintain their position. Of those, around 360,000 accounts have been forcefully liquidated.

“South Korean media reports indicate that more than 60 per cent of liquidated investors are under 30 and have not just lost everything, but are now in debt.”

What does that do to your country? Population is estimated at 52m total (2024) & like all so-called advanced economies, demographically underweight in youngs.

https://www.abc.net.au/news/2026-08-03/korean-markets-threatening-upset-tech-boom/106981956

(For demographics see https://en.wikipedia.org/wiki/Demographics_of_South_Korea)

#ABC #Australian Broadcasting Corporation #SouthKorea #SouthKoreanPolitics #Kospi #stockMarket #liquidatedInvestors #singleStockLeveragedETFs #cautionaryTale