Samsung Electronics and SK Hynix Leveraged ETFs to Debut, Adding New Tool for Memory Chip Investment

TradingKey - On April 21, the South Korean Financial Services Commission announced that the amendment to the Enforcement Decree of the Capital Markets Act has been approved by the State Council. This means that single-stock leveraged ETFs will be listed as early as May 22. The first batch of underlying assets will be semiconductor giants Samsung Electronics and SK Hynix, providing investors with ±2x leveraged tools.

This move is the latest measure taken by the South Korean government to address capital outflows and stabilize the local currency's exchange rate. As South Korean investors continue to increase their holdings in U.S. stocks, authorities have recently introduced various policies to encourage capital repatriation to the domestic stock market. The introduction of single-stock leveraged ETFs aims to boost domestic stock trading and enhance capital market vitality.

This reform breaks institutional restrictions that have existed in the South Korean stock market for over a decade. Previously, South Korean ETFs were required to diversify investments across at least 10 stocks, with no single stock's weight exceeding 30%. This situation long prevented single-stock leveraged ETFs from being traded domestically.

Consequently, many South Korean investors turned to similar products listed overseas. As of April 21, 2026, the net asset values of the Samsung Electronics and SK Hynix 2x leveraged products issued by CSOP Asset Management on the Hong Kong Stock Exchange reached approximately HKD 6.912 billion and HKD 25.081 billion, respectively.

Why were Samsung and SK Hynix selected as the first batch of underlying assets? The admission criteria provide the answer: underlying stocks must meet strict requirements, such as accounting for over 10% of market capitalization and over 5% of trading volume. Currently, only these two companies meet these criteria.

As of the close on April 21, SK Hynix's share price stood at 1,224,000 KRW, hitting an all-time high. Samsung Electronics achieved an operating profit of 57.2 trillion KRW in the first quarter, a 755% year-on-year increase, while memory chip exports rose 151.4% year-on-year in March to reach a record high. Amid the AI-driven memory chip supercycle, Samsung Electronics and SK Hynix enjoy significant market attention and a strong liquidity base.

Compared to similar products listed on the Hong Kong Stock Exchange, South Korean leveraged ETFs are subject to stricter risk management. Investors are required to complete an additional hour of advanced education and pay a minimum margin of 10 million KRW. Product names must clearly include terms such as "single stock" and "leveraged" to indicate the risks involved.

The impact of this reform is not limited to ETFs. In June, weekly options products for four stocks—Samsung Electronics, SK Hynix, Hyundai Motor, and LG Energy Solution—will also be launched. The option expiration dates will be expanded from fixed Thursdays to every day from Monday to Friday. The simultaneous expansion of these derivatives will push the South Korean capital market toward a higher level of maturity.