The largest Korean leverage ETF recorded a pullback of 71.6% from its peak level.

Korean leverage ETFs fell 71.6% from peak as the KOSPI dropped nearly 44% monthly. Despite a slight BTC rise, sharp declines in SK Hynix and other semiconductors drove margin balances back to early-year levels.

South Korean leverage ETFs experienced a pullback of 71.6% from their peak levels, while the Korea Composite Index dropped by nearly 44% on a monthly basis. The balance of margin loans returned to its levels at the beginning of the year. Although BTC rose by 1.2% in 24 hours, sharp declines in leading semiconductor companies such as SK Hynix dragged down overall leverage funds, causing them to shrink significantly. Market sentiment was heavily impacted by the weakness in the semiconductor sector, with the contraction in leverage funds far exceeding the cushion provided by any short-term rally in Bitcoin. If the Korea Composite Index continues to fall or the margin loan balance breaks down below its starting level, the trend of reduction in leverage funds is likely to intensify further.