"I Feel Like I’m Losing My Mind" ... Retail Investors Left Reeling by Leveraged ETFs [Salaryman’s Joys and Sorrows]

[Financial News] "I sold yesterday, but it went up today."
A salaried worker in his 30s, identified as A, said he cut his losses on a single-stock leveraged exchange-traded fund (ETF) tied to Samsung Electronics on the 23rd, only to watch it rebound the next day. On the 23rd, Samsung Electronics fell 12.31%, and single-stock leveraged products tied to the stock dropped an average of 24.6%. But when Samsung Electronics rose 9.84% on the 24th, related leveraged ETFs climbed more than 19%.
He said, "I kept thinking I should have held on one more day, but after seeing how much it had fallen intraday the day before, it was hard to stay in." He added, "I couldn’t keep checking it while I was working, so that made me even more anxious."

Samsung Electronics single-stock leveraged ETFs are amplifying investors’ fatigue as they swing between sharp losses and rebounds from one day to the next. Because these products are designed to track twice the daily move of Samsung Electronics, gains can grow quickly in a rising market, but losses can also pile up fast when the stock falls. For salaried investors, the difficulty of responding during trading hours is another burden.
On the 23rd, large-cap semiconductor stocks moved sharply lower in the domestic market. According to the Korea Exchange (KRX), Samsung Electronics closed at 310,000 won, down 12.31% from the previous session. SK hynix also ended the day at 2,555,000 won, down 12.47%.
As the underlying assets fell by more than 12%, the leveraged products dropped even more. Market data showed that the average decline of seven Samsung Electronics single-stock leveraged products on the 23rd was 24.6%. The average loss for seven SK hynix single-stock leveraged products was 25.6%.
The next day, the trend reversed. On the 24th, Samsung Electronics closed at 340,500 won, up 9.84% from the previous session. As the stock rebounded, related leveraged ETFs also ranked among the top gainers.
According to ETF CHECK, Koscom Corporation’s ETF information service, ACE Samsung Electronics Single-Stock Leveraged ETF rose 19.59% on the 24th. RISE Samsung Electronics Single-Stock Leveraged ETF gained 19.13%, 1Q Samsung Electronics Futures Single-Stock Leveraged ETF rose 19.07%, PLUS Samsung Electronics Single-Stock Leveraged ETF climbed 19.03%, and KODEX Samsung Electronics Single-Stock Leveraged ETF advanced 18.65%.
For investors who sold on the 23rd, it was a frustrating rebound. But a 19% rise the next day does not fully recover the previous day’s losses. For example, if 1 million won falls 24.6%, it drops to 754,000 won. Even after a 19% gain from there, it only rises to about 897,000 won. In other words, a sharp drop followed by a similar-sized rebound does not immediately restore the original principal.

The volatility of leveraged products hits salaried workers especially hard. When morning meetings, business trips, and lunch appointments overlap, it is difficult to check prices in real time. Whether the market is falling sharply or rebounding, trading decisions can be delayed.
A salaried worker in his 40s, identified as B, said, "I thought it was only down a little in the morning on the 23rd, so I went into a meeting. By lunchtime, the loss had widened a lot." He added, "I thought about holding on because it was Samsung Electronics, but the leveraged product moved too fast. I kept worrying about it even while I was working."
Even a familiar name like Samsung Electronics can cloud investment judgment. Samsung Electronics is one of the most familiar large-cap stocks to Korean investors, but a Samsung Electronics single-stock leveraged ETF is not the same as buying Samsung Electronics shares directly. It is designed to deliver twice the stock’s daily return, and over the long term, the result can differ from a simple two-times multiple of the underlying asset’s performance.
In this situation, a salaried worker in his 30s, identified as C, said, "Because it was Samsung Electronics, I thought the risk would be small. But once I saw it fall more than 20% in a single day, I realized I should have looked more carefully at how the product works."

According to the Financial Services Commission (FSC) and the Financial Supervisory Service’s guidance issued on the 26th of last month, single-stock leveraged products concentrate investment in a specific stock and magnify both gains and losses. The authorities said they are not suitable for investors with a low understanding of the product structure and investment risks.
Single-stock leveraged products track twice the daily move of individual stocks such as Samsung Electronics and SK hynix. Unlike ordinary ETFs, which spread investments across multiple stocks, these products can react sharply to a company’s earnings outlook, industry conditions, supply and demand, or a specific news event.
Given Korea’s 30% daily price limit, the theoretical maximum loss in a single day could reach 60%. The FSC explained that if an underlying asset rises 30% and then falls 30%, a regular product would lose 9%, while a 2x leveraged product could lose 36%.
The investment requirements are also different from ordinary stock trading. New investors must complete one hour of basic education and one hour of advanced education, and they must deposit at least 10 million won in base collateral.
After watching the rebound on the 24th, A said he did not buy more. He said, "I do think I would have lost less if I had just waited one more day," but added, "What matters more is whether you can actually endure that one day." He stressed, "With this product, the first thing to consider is not which stock will rise, but whether you can handle the intraday swings."
hsg@fnnews.com Han Seung-gon Reporter