As volatility in the domestic stock market intensifies, single-stock leveraged products are experiencing wild swings.

After plummeting by approximately 25% the previous day, single-stock leveraged products, led by those tracking Samsung Electronics, surged by about 19% today (June 24).

The trading value for the day neared 20 trillion won, marking the highest level since their listing.

According to the Korea Exchange and Koscom CHECK, seven single-stock leveraged products tracking Samsung Electronics rose by around 19% on this day.

"ACE Samsung Electronics Single Stock Leverage" saw the highest gain at 19.59%, followed by "RISE Samsung Electronics Single Stock Leverage" at 19.13%, "1Q Samsung Electronics Futures Single Stock Leverage" at 19.07%, and "PLUS Samsung Electronics Single Stock Leverage" at 19.03%.

High-volume products such as "KODEX Samsung Electronics Single Stock Leverage" and "TIGER Samsung Electronics Single Stock Leverage" rose by 18.65% and 18.51%, respectively.

This stands in stark contrast to the previous day, when all Samsung Electronics single-stock leveraged products plunged by 24% to 25%.

As the underlying stock, Samsung Electronics, plummeted 12.31% the previous day before rebounding 9.84% today, the single-stock leveraged products, which track twice the daily return of the underlying asset, exhibited volatility more than double that of the stock itself.

Meanwhile, SK Hynix single-stock leveraged products, which recorded similar declines to the Samsung Electronics products the previous day, saw only a modest rebound of 1% to 2% as the underlying stock, SK Hynix, closed with a 0.98% gain.

Amid the rapidly changing market conditions, trading value reached its highest level since the products were listed on May 27.

The trading value for 16 single-stock leveraged products tracking Samsung Electronics and SK Hynix was recorded at 19.3924 trillion won on this day.

Since their listing on May 27, the trading value of single-stock leveraged products had fluctuated around 10 trillion won until the 17th, but it hit a record high of 18.5041 trillion won on the 19th, and set a new record again today.

Even on "Black Tuesday" (June 23), the trading value reached 17.8126 trillion won.

As of today, the market capitalization of the 16 single-stock leveraged products stood at 12.3077 trillion won, with a total net asset value of 12.5176 trillion won.

This is more than double the figures recorded on the day of their listing.

While single-stock leveraged products can yield returns of more than double the underlying stock's gains in a bull market, they are subject to the "negative compounding effect," where losses accumulate in a falling or sideways market.

For instance, if an index falls 20% and then rises 20%, a standard product would see a 4% loss (100→80→96), but a leveraged product would experience a 16% loss (100→60→84) due to the 40% decline followed by a 40% rise.

Financial authorities, concerned about the extreme volatility of single-stock leveraged products, have begun working on safety measures for investors.