The total market cap of ETFs listed on the Korea Exchange surged to a record 514.4 trillion won, or $339 BILLION.
This is up more than +70% year-to-date, driven almost entirely by leveraged funds tied to Samsung and SK Hynix.
CSOP's SK Hynix leveraged ETF alone reached ~$10 billion in assets under management in late May, making it the world's largest single-stock leveraged ETF.
Additionally, margin debt on the Kospi Index hit 27.8 trillion won, or ~$18.3 billion, up +61.6% since the start of the year.
This is all unfolding at a time when Samsung and SK Hynix account for 47% of the entire Kospi index, with Samsung up +174.4% and SK Hynix up +217.9% this year, both joining the $1 trillion market cap club in May.
This concentration means that a sharp decline in just 2 stocks has the potential to trigger a market-wide forced liquidation event.
This is because leveraged positions are automatically unwound when prices fall, amplifying declines rather than stabilizing them.
The South Korean market is now a CASINO
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