Korean retail investors make their first monthly net purchases of leveraged ETFs after new regulations, betting on a rebound in chip stocks

1. Since South Korean retail investors faced stricter investment rules at the end of July, they have, for the first time, achieved a monthly net purchase of single-stock leveraged ETFs. As the South Korean stock market plunged, demand for betting on a rebound in major chip companies such as Samsung Electronics and SK Hynix surged again.2. According to data from the Korea Exchange on the 25th, from the 1st to the 23rd of this month, individual investors made a net purchase of 14 single-stock leveraged ETFs linked to Samsung Electronics and SK Hynix, totaling 315.4 billion won (about $221 million). Of these, seven SK Hynix-related products saw net purchases of 226.3 billion won, while seven Samsung Electronics-related products had net purchases of 89.1 billion won.3. This marks the first time retail investors have returned to monthly net purchases since new regulatory measures took effect at the end of July. In July, retail investors had recorded net purchases of 2.77 trillion won in these 14 ETFs. However, after the regulatory authority raised the minimum margin requirements on July 31, retail investors turned to net selling, with a net sale of 648.4 billion won in August and 497.9 billion won in September. This month, they have returned to the buying camp.