When your two biggest bets in a market account for nearly 40% of the entire index, the banks holding the other side of the trade start getting nervous. That’s exactly what’s happening now with Samsung Electronics and SK Hynix, as global prime brokers reduce the leveraged exposure they’re willing to extend to hedge funds piling into Asia’s AI chip darlings.
The leverage problem hiding in plain sight
Samsung and SK Hynix collectively represent roughly 40% of the Kospi Index and approximately half of the MSCI Korea Index. That kind of concentration means any sharp move in either stock doesn’t just affect a portfolio. It moves the entire market.
CSOP’s Hong Kong-listed 2x leveraged ETFs tracking these stocks now manage around $3.3 billion in assets. South Korea itself launched between 16 and 18 single-stock leveraged ETFs tied to Samsung and SK Hynix around May 27, 2026, with initial assets under management estimated at 1.33 to 1.34 trillion won. A single fund manager reportedly attracted roughly 300 billion won in foreign inflows for related ETF offerings.
During the May 15, 2026 selloff, rebalancing activity from leveraged ETFs accounted for approximately 17% of SK Hynix’s daily trading volume and about 10% of Samsung’s.
