Retail investors have net sold more than 1.7 trillion won worth of single-stock leverage products—totaling 16 products, including two inverse funds—over the past month since regulations on these assets were tightened.

The average daily trading value this month plummeted to one-nineteenth of the level recorded before the regulations took effect, following the initial listing of the single-stock leverage and inverse products.

According to the Korea Exchange and Koscom CHECK today (August 30), individual investors posted a selling dominance of 1.773 trillion won in the 16 Samsung Electronics and SK Hynix single-stock leverage and inverse products from July 31 to August 28.

Previously, retail investors had net purchased a total of 15.2876 trillion won worth of these products from May 27, when single-stock leverage funds were simultaneously listed, until July 30, the day before the minimum deposit requirement was raised.

Broken down by stock, investors bought 9.9365 trillion won in the eight SK Hynix single-stock leverage and inverse products and 5.3511 trillion won in the eight Samsung Electronics counterparts.

Single-stock leverage products grew rapidly amid a semiconductor boom, drawing liquidity away from markets like the Kosdaq.

The total net asset value of the 16 Samsung Electronics and SK Hynix single-stock leverage and inverse products expanded by 16.9 percent from 5.0075 trillion won on May 27 to 5.8534 trillion won on July 30.

However, the atmosphere changed completely after the minimum deposit requirement was raised from 10 million won to 30 million won starting July 31.

Over the roughly one-month period from the first day of regulation through August 28, the amount of single-stock leverage and inverse products offloaded by individuals totaled 1.773 trillion won, consisting of 531.6 billion won related to Samsung Electronics and 1.2415 trillion won related to SK Hynix.

Trading values also plunged sharply.

Starting at 10.418 trillion won on May 27, the trading value of the 16 single-stock leverage and inverse products surged to 19.4429 trillion won about a month later on June 24.

The average daily trading value between May 27 and July 30 stood at 11.6787 trillion won.

Looking at monthly figures, it rose from 9.2903 trillion won in May to 11.4251 trillion won in June, and 12.2735 trillion won in July.

However, it dropped precipitously to 3.1518 trillion won on July 31, the very first day of the tightened regulations, and further shrank to 537 billion won by August 28, roughly a month later.

The average daily trading volume this month was tallied at 100.59 billion won.

Compared to the average daily trading value from the product launch until just before the regulatory tightening, this amounts to a mere one-nineteenth.

Amid persistent criticism that single-stock leverage products were fueling volatility in the domestic stock market, financial authorities raised the minimum deposit requirement from 10 million won to 30 million won starting July 31.

Furthermore, mock trading became mandatory for single-stock investments starting August 19.

Additional regulations, such as expanding the trading unit size to 20 shares, are also scheduled to be implemented within November.

The market views that the sharp drop in single-stock leverage trading following the regulations has helped alleviate market concentration in semiconductors and reduce volatility.

Ha Jae-seok, an analyst at NH Investment & Securities, evaluated, "Since August, the total net asset value and trading volume of single-stock leverage have decreased, easing the concentration in semiconductors. As the earnings momentum of Samsung Electronics and SK Hynix also slows, conditions have been created for the upward trend previously concentrated on semiconductors to spread to other sectors."

Nevertheless, some point out that a "balloon effect" has occurred, with single-stock leverage investors shifting their investment targets to index leverage or overseas leverage products.

In fact, top-ranked stocks by trading volume between July 31 and August 28 included KODEX Leverage (ranking 2nd with an average daily trading volume of 1.9966 trillion won), KODEX Kosdaq150 Leverage (ranking 6th with 754.3 billion won), and KODEX 200 Futures Inverse 2X (ranking 7th with 750.5 billion won).

Retail investors focusing on the U.S. stock market, known as "Seohak ants," net purchased $187.37 million (approx. 258.7 billion won) of QLD (PROSHARES ULTRA QQQ), an exchange-traded fund (ETF) tracking twice the Nasdaq 100 index, between August 3 and 28 (based on settlement date).

This is the sixth-largest investment amount among U.S. stock market holdings by Seohak ants.

(Photo: Yonhap News)