South Korean high-net-worth investors sold off 148.3 billion won worth of Samsung and SK Hynix stocks, shifting to semiconductor leveraged ETFs.

Approximately 7,900 high-net-worth investors in South Korea with financial assets over 3 billion won net sold Samsung Electronics and SK Hynix stocks between October 1 and 20, totaling 5.59 billion won and 9.24 billion won respectively, for a combined 14.83 billion won (around $11.2 million). Meanwhile, funds shifted to leveraged ETFs: KODEX Semiconductor Leveraged ETF saw net purchases of 33.2 billion won in the same period, while KODEX Leveraged ETF and KODEX 200 ETF recorded net buys of 22.5 billion won and 10.5 billion won respectively; the inverse double-leveraged ETF tracking the KOSPI 200 index was net sold 8 billion won. Data shows these investors did not fully exit South Korea’s semiconductor sector and stock market, but instead shifted from direct holdings of chip leaders to betting on gains in the sector and broader market via leveraged ETFs. However, leveraged ETFs’ daily return-tracking mechanism may amplify losses in volatile markets, leaving investors exposed to higher drawdown risks.