SK Hynix Plunges 15.37% on July 13 as Leveraged ETF Forced Liquidations Amplify Market Selloff

According to Bloomberg, on July 15, SK Hynix stock collapsed 15.37% on July 13—its steepest decline since company founding—while Samsung Electronics dropped 10.7%, as leveraged exchange-traded funds triggered forced selling. Bloomberg cited a Goldman Sachs report indicating that leveraged ETF managers may have sold approximately $5 billion worth of SK Hynix shares to rebalance positions, representing about 18% of that day's total trading volume in the stock.

Bloomberg highlighted South Korea's policy misstep in permitting leveraged ETF sales to retail investors and noted comments from Financial Services Commission Chair Lee Chan-jin, who stated in late June that regulators "should have blocked the securities registration no matter what" and expressed regret over the "hasty preparation" of single-stock leveraged products. The outlet also referenced Blue House Policy Director Kim Yong-beom's statement that authorities are "closely monitoring the impact of leveraged ETFs," noting that Kim had spearheaded the product launch.