Low-priced chip bets widen retail access as Samsung, Mirae eye W1tr inflows Seoul’s financial district of Yeouido (In Se-jun/The Korea Herald) Leveraged products tied to Samsung Electronics and SK hynix will debut at an initial listing price of 20,000 won ($13.30), investment banking industry sources said Thursday, setting the entry point far below the underlying chip stocks as Korea prepares to launch its first leveraged single-stock products.The Korea Exchange recently approved asset managers’ proposed listing price ahead of the products’ scheduled debut on May 27, according to sources. Unlike management fee approvals overseen by the Financial Supervisory Service, the initial listing price is determined by asset managers and approved by the exchange.The launch price is a fraction of the underlying shares themselves. Samsung Electronics is trading near 300,000 won, while SK hynix has surged to around 2 million won amid the AI-driven semiconductor rally, potentially broadening retail access to leveraged bets on the country’s two largest chipmakers.Single-stock leveraged products are designed to magnify the daily returns of individual shares, typically by two times, allowing investors to make amplified directional bets with relatively small amounts of capital. While the structure can boost gains during sharp rallies, losses are also magnified when shares reverse.Samsung Asset Management, the country’s largest ETF manager, plans to launch one leveraged product each tied to Samsung Electronics and SK hynix. Combined initial assets for the two products are expected to exceed 1 trillion won, which would mark the largest initial inflows ever for leveraged products launched in South Korea, according to sources.Its rival, Mirae Asset Global Investments, is also expected to attract inflows on a similar scale through its own launches.“Samsung Electronics and SK hynix shares have become too expensive for many retail investors,” an industry official said. “Leveraged instruments are likely to emerge as an alternative for investors seeking exposure to the AI chip rally.”The official added that some investors who had hoped to buy SK hynix directly may instead turn to leveraged products as a cheaper way to gain amplified exposure to the stock’s movements.Critics warned that the relatively low listing price could lower psychological barriers for retail investors and intensify speculative trading activity.“Lower prices can reduce investors’ psychological burden and weaken their perception of risk,” said Kim Dae-jong, a professor at Sejong University Business School. “The 20,000 won entry price could become bait, drawing FOMO-driven retail investors into leveraged risk.”Financial authorities said approval of the leveraged products was partly intended to draw Korean capital back from Hong Kong-listed single-stock leveraged products tied to Samsung Electronics and SK hynix.Hong Kong-based CSOP Asset Management previously launched leveraged products tied to Samsung Electronics and SK hynix at HK$7.8 ($1) each as part of a strategy aimed at maximizing accessibility and trading activity.“About 200 billion won to 300 billion won has been invested in Samsung and SK hynix single-stock products listed in Hong Kong,” one regulatory official said. “Ideally, those funds would return to the Korean market through these new listings.”Regulators, however, remain wary of excessive speculation. The Financial Supervisory Service said it plans to issue another investor warning ahead of the listings, while the Financial Services Commission said authorities were seeking to balance investor protection with market development.