Samsung and SK Hynix's leveraged products in South Korea saw nearly $1 billion in capital outflow this month

As investor enthusiasm for AI trading cools and regulators strengthen measures to curb demand, leveraged ETFs linked to chip manufacturers in South Korea have seen nearly $1 billion in outflows this month. So far, leveraged products tracking Samsung Electronics have experienced outflows of $381 million in August, while related products tracking SK Hynix have seen outflows of $601 million, marking the first monthly outflow for these products since their launch at the end of May.

Especially during the global AI trading sell-off in July, when the South Korean Kospi index experienced a historic plunge, with a monthly decline of 22%. Subsequently, South Korean regulators raised the minimum margin requirements for new investors purchasing such products and required investors to undergo a 5-day simulated trading period.