'Stock Market Has Become a Casino': 1.16 Million Complete Leverage ETF Training as Samsung, SK Hynix Bets Turn Into a Retail Graveyard

1.16 million completed leverage training as retirement savings and young investors' seed money poured in

First-half leverage ETF training completions jumped 19-fold

$6.16 billion flowed into six leveraged SK Hynix products

$3.40 billion went into five leveraged Samsung Electronics funds

The number of investors completing mandatory pre-trading education for leveraged exchange-traded funds in South Korea jumped 19-fold in the first half from a year earlier. The surge points to a frenzy for single-stock leveraged ETFs tied to Samsung Electronics and SK Hynix, with retirees' nest eggs and young investors' seed capital pouring in. But those products are estimated to have generated heavy losses as returns were cut roughly in half during a period of extreme market volatility. Among retail investors, complaints are mounting that the stock market has become a casino rather than a place to invest.

More Than 5,000 Minors Also Joined the Rush

Data submitted by the Korea Financial Investment Association to the office of Rep. Kang Myung-gu of the National Assembly's Political Affairs Committee showed that 1,162,751 people completed basic leverage training at the Financial Investment Education Institute between January and June. That compares with 60,972 a year earlier, an increase of about 19 times. It also far exceeded the 205,911 completions recorded in all of last year.

Enrollment in the advanced course required for single-stock leveraged investing also surged. Monthly completions since the course was introduced totaled 4,832 in April, 401,001 in May and 284,376 in June. Cumulative completions since the April launch reached 690,209, suggesting the actual number of single-stock leveraged investors may be around 700,000.

By age group, people in their 40s accounted for the largest number of advanced-course completions from April through July 13, at 210,745. They were followed by those in their 50s at 189,308, 30s at 176,488, 20s at 82,172, 60s at 70,339, 70s at 10,499 and 80s at 1,353. The total also included 5,596 minors, who must complete additional procedures such as obtaining parental consent. The appetite for high-return leverage bets has spread beyond adults to underage investors.

Single-stock leveraged and inverse products that drew heavy retail inflows have meanwhile turned into what local investors call a graveyard for mom-and-pop traders, posting steep losses in a highly volatile market. From their May 27 launch through July 16, 16 single-stock leveraged and inverse ETFs tied to Samsung Electronics and SK Hynix logged total net inflows of 13.4133 trillion won.

Six leveraged SK Hynix ETFs drew 8.5456 trillion won, while five leveraged Samsung Electronics ETFs attracted 4.7211 trillion won. By contrast, two inverse products designed to deliver double returns by betting on declines in Samsung Electronics and SK Hynix took in a combined 146.6 billion won.

Retail investors' top net purchase was the KODEX SK Hynix Single Stock Leverage ETF, which drew 4.9991 trillion won. It was followed by the TIGER SK Hynix Single Stock Leverage ETF with 3.4461 trillion won, the KODEX Samsung Electronics Single Stock Leverage ETF with 3.0757 trillion won, the TIGER Samsung Electronics Single Stock Leverage ETF with 1.8916 trillion won, the SOL SK Hynix Futures Single Stock Inverse 2X ETF with 149.3 billion won, and the ACE SK Hynix Single Stock Leverage ETF with 98.6 billion won.

As large sums flowed in, the underlying shares slumped sharply, cutting returns on leveraged products nearly in half. The KODEX SK Hynix Single Stock Leverage ETF, which drew the most money, plunged 47.5% over the period, falling from 27,775 won to 14,585 won. That was more than double the 17.9% decline in SK Hynix shares over the same period. The KODEX Samsung Electronics Single Stock Leverage ETF slid 41.7% as Samsung Electronics stock fell 16.9%.

Inverse products also lost money. The SOL SK Hynix Futures Single Stock Inverse 2X ETF dropped 31.1%, while the PLUS Samsung Electronics Futures Single Stock Inverse 2X ETF fell 8.9%. From the start of July through July 16, retail investors bought 10.704 trillion won worth of Samsung Electronics and 6.2424 trillion won worth of SK Hynix, making them the two most-bought stocks despite severe volatility.

Kospi Intraday Volatility Hits 6.75%, Highest Since 1987

Investor complaints that the stock market has turned into a gambling table are also mounting because of the extreme swings. Korea Exchange data showed the Kospi's average intraday volatility from the start of July through July 16 stood at 6.75%. That was the highest since the exchange began compiling the data in 1987. It exceeded the previous record of 6.11% set in October 2008 during the global financial crisis and topped the 5.37% recorded in December 1997 during the Asian financial crisis.

Intraday volatility is calculated by dividing the gap between the day's high and low by the average of those two values. In practical terms, that means the index moved an average of 3.37% above or below its midpoint each trading day this month.

The Kospi has shown extreme volatility this year. Three of the 10 highest monthly intraday-volatility readings of the past two decades were recorded in 2026 alone. Along with July, June at 5.02% and May at 4.02% also ranked in the top 10.

The Kospi has posted a double-digit intraday volatility reading only nine times in its history, and three of those instances came this year. It surged to 11.42% on March 4, then reached 11.18% on June 23 and 10.42% on July 13. The VKOSPI, the Kospi 200 volatility index often referred to as Korea's fear gauge, remained elevated at 87.14 on July 16. It closed at 96.94 on June 29, the highest since the exchange began publishing the index on April 13, 2009.

Brokerages say investors remain quick to dump shares even as global semiconductor companies report strong earnings. "Recently, investors have shown a tendency to panic-sell whenever they find even the slightest excuse," Lee Jae-won, an analyst at Yuanta Securities, said. Volatility driven by leveraged ETFs and the absence of a clear net-buying base pushed the index to valuations below those seen during the financial crisis, he added.

Criticism is also coming from politicians. Rep. Park Soo-young of the ruling People Power Party said the Lee Jae-myung administration pushed ahead with the launch of single-stock products tied to Samsung Electronics and SK Hynix ahead of local elections in an effort to prop up share prices. As a result, the stock market swung like a casino. In July alone, 7 trillion won flowed into the single-stock ETFs tied to the two companies, while returns were cut in half and retail investors were left bearing the losses.

Na Kyung-won, also of the People Power Party, said the "casino-style" leveraged ETFs had inflicted heavy losses on seniors' retirement money, young people's seed capital and the investments of 14 million retail traders. Yet there has been no accountability for the policy failure and no apology.

Former People Power Party lawmaker Yoo Seong-min said someone must be held responsible for the policy failure. In a market where Samsung Electronics and SK Hynix account for more than 50% of total market capitalization, he said, lawmakers should determine who introduced such high-risk leveraged products — which he said can hardly be called ETFs — and for what purpose. He called for a parliamentary investigation.

Kang Kyung-ju, Hankyung.com reporter qurasoha@hankyung.com