South Korean Margin Loans Drop Over 10% Amid Tech Volatility

Korean retail investors cut margin borrowing by >10% since late June as leveraged ETF AUM for Samsung and SK Hynix fell from $11B to $4.1B.

Woofun AI data shows that margin loans for stock trading in South Korea have decreased by more than 10% since the end of June. Assets under management for leveraged ETFs linked to Samsung Electronics and SK Hynix declined from over $11 billion on June 25 to $4.1 billion, driven by falling stock prices. Fund inflows for these products turned negative over the past two weeks. Ivan Feinseth, Chief Investment Officer of Tigress Financial Partners, stated that large-scale deleveraging is usually a healthy and necessary market adjustment.