Story perspectives

Bank of Korea eyes delisting leveraged Samsung, SK Hynix ETFs.

7/6/2026

Summary

Story summary

Bank of Korea warned that leveraged ETFs on Samsung and SK Hynix threaten market stability.
Samsung and SK Hynix held 55.3% of market capitalisation on 24 June 2026.
On 2 July 2026 the KOSPI fell over 5% in ten minutes, triggering a circuit-breaker.
Financial Supervisory Service governor Lee Chan-jin and Bank officials said they will tighten monitoring and consider delisting the leveraged ETFs.

History

Historical Context

The May 6, 2010 “Flash Crash” on the New York Stock Exchange saw the Dow Jones Industrial Average plunge 9 % within minutes, triggering circuit-breakers. The Securities and Exchange Commission later reported that high-frequency trading firms executed roughly 4 million orders, accounting for 70 % of volume during the crash. Similarly, on 2 July 2026 the Bank of Korea warned leveraged ETFs on Samsung and SK Hynix caused a 5 % drop in ten minutes, triggering a circuit-breaker. These parallels urge regulators to tighten ETF oversight, curbing rapid market dislocations and prompting new circuit-breaker rules similar to those after the 2010 flash crash.

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Story summary

Bank of Korea warned that leveraged ETFs on Samsung and SK Hynix threaten market stability.
Samsung and SK Hynix held 55.3% of market capitalisation on 24 June 2026.
On 2 July 2026 the KOSPI fell over 5% in ten minutes, triggering a circuit-breaker.
Financial Supervisory Service governor Lee Chan-jin and Bank officials said they will tighten monitoring and consider delisting the leveraged ETFs.

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