Samsung, SK Hynix‑linked leveraged ETFs sink below listing prices - The Korea Economic Daily Global Edition

South Korea's stock market experienced a significant downturn on July 7, 2026, with the Kospi index closing down 4.91% at 7,656.31 points. This decline was primarily driven by leveraged ETFs linked to... Read original →

The July 7 KOSPI plunge reflects a convergence of peak-cycle fragility and misaligned leverage—not just market noise. Technically, despite Samsung and SK Hynix’s lead in HBM3E and AI DRAM, slowing downstream inventory restocking and aggressive 2nm rollouts by Taiwan, China foundries are narrowing Korea’s tech window. Tightening U.S. export controls on advanced equipment will inflate overseas fab costs and force redundant supply chains. TSMC is poised to expand CoWoS capacity to lock in NVIDIA and AMD, eroding Korean influence in advanced packaging. Over the next 12–24 months, leveraged ETF collapses will accelerate retail capital flight from volatile chip equities, pushing industry players toward more resilient IDM 2.0 models. The real long-tail impact isn’t valuation correction—it’s the collapse of blind faith in single-technology narratives.