South Korea’s Extreme Market Volatility Triggers Intervention on Leveraged ETFs Tied to SK Hynix, Samsung

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Seoul is tripling the cash Korean investors must hold to trade leveraged single-stock funds, an emergency attempt to contain the violent volatility that have triggered several emergency trading halts on the KOSPI index in recent weeks.

South Korean equities – as tracked by the iShares MSCI South Korea ETF (NYSE:EWY) – have fallen 21.7% over the past four weeks, the steepest four-week decline since March 2020.