Overview
- The Kospi plunged nearly 10% on Tuesday after Korea's Financial Supervisory Service warned about ultra‑leveraged single‑stock ETFs and heavy retail margin positions triggered forced selling and circuit breakers.
- South Korea approved about 16 leveraged single‑stock ETFs that swelled to roughly $9 billion and amplified losses by magnifying daily moves and forcing rapid unwinds when prices fell.
- Micron reported stronger‑than‑expected quarterly results after the market close and said customers committed about $22 billion for its memory chips, which spurred a sharp rally in memory stocks the next session.
- SK Hynix disclosed plans for a Nasdaq American Depositary Receipt listing to raise about $29.4 billion, a move that boosted its share price and widened foreign investor access to Korean memory makers.
- Despite the rebound, markets face elevated volatility because of stretched AI‑era valuations, concentrated retail exposure in Korea, and the memory sector's historical cyclicality, so upcoming capex plans, hyperscaler buying and US inflation data will determine whether gains hold.