Korea's Samsung and Hercules-leveraging products are running out of nearly $1 billion this month
On August 25, as investors' enthusiasm for artificial intelligence transactions cooled, and regulators strengthened their demand-restraint measures, South Korea's leverage ETF, linked to chip manufacturers, was close to $1 billion this month. To date, the tracking of the tristar electronic leverage product, which was $381 million in August, and the tracking of $601 million in SK Hercules-related products, is the first time that these products have experienced monthly outflows since their launch at the end of May. In particular, in July, when the global AI deal was sold, the South Korean Kospi index experienced a historic collapse, reaching 22 per cent a month. Since then, Korean regulators have raised the minimum security requirement for new investors to purchase such products and have required investors to conduct a five-day simulation。
