# South Korean Semiconductor Leverage ETFs Plunge Over 90 Percent Investors face massive losses as AI infrastructure concerns trigger a semiconductor stock sell-off. - **Source:** [Maeil Business](https://www.mk.co.kr) - **Published:** 2026-11-06 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/d40075d2-6545-40be-84d8-934519fe17eb ## Leveraged ETF Market Collapse South Korean semiconductor leverage products have plummeted by over 90 percent from their June peaks. Investors betting on the growth of Samsung Electronics and SK Hynix faced severe losses as underlying stock prices dropped sharply over two consecutive days. These financial instruments amplify daily returns, leading to catastrophic outcomes during market downturns. ## SK Hynix Valuation Plunge The SOL SK Hynix single-stock leverage fund closed at 3,340 won on November 6, marking a 91 percent decline from its June 22 high of 36,975 won. Similar products from KODEX and TIGER also suffered losses exceeding 90 percent, reflecting the extreme volatility inherent in these high-risk, concentrated semiconductor investment vehicles. ## Samsung Electronics Stock Decline Samsung Electronics leverage products experienced similar distress, with KODEX and TIGER funds falling approximately 81 percent from their June highs. On the day of the report, Samsung shares dropped 6.35 percent to 188,700 won, while SK Hynix shares fell 10.44 percent to 1,132,000 won, directly impacting the value of these leveraged positions. ## Inverse Products Gain Momentum While long-position leverage products collapsed, inverse funds designed to profit from stock declines reached their highest levels in months. The PLUS Samsung Electronics inverse 2X fund hit its highest price since late July. Similarly, SK Hynix inverse 2X products reached their highest valuation since October 20, signaling a shift toward defensive hedging. ## AI Investment Sentiment Shift Market analysts attribute the semiconductor sell-off to growing concerns regarding a slowdown in global AI infrastructure investment. This sentiment has permeated the entire semiconductor value chain, causing significant anxiety among domestic investors. The rapid withdrawal of capital from these sectors highlights the market's extreme sensitivity to shifts in AI-related demand. ## Expert Analysis of Volatility Lee Kyung-min, a researcher at Daishin Securities, noted that fears of slowing AI infrastructure investment have spread across the broader semiconductor industry. This widespread uncertainty caused the local stock market to dip below the 5,000-point threshold during intraday trading, though some of these losses were later recovered through late-session market adjustments. ## Structural Risks for Investors The current market environment underscores the inherent dangers of single-stock leverage products during periods of high volatility. Because these funds are designed to track daily performance, sustained downward pressure on major semiconductor stocks leads to rapid erosion of principal. Investors are now grappling with the reality of significant capital loss in months. ## Future Market Outlook Considerations Market participants are closely monitoring whether the current decline in semiconductor valuations represents a temporary correction or a long-term shift in the AI investment cycle. Given the sensitivity of Samsung and SK Hynix to global demand, future performance will likely depend on clearer signals regarding sustained capital expenditure in AI infrastructure. ## Sources covering this story - https://www.mk.co.kr/news/stock/12200743 — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._