Kosdaq Index Falls 36% Since Single-Stock Leverage Products Launch on May 27

According to BizWatch, South Korea's Kosdaq index has fallen 35.9% since single-stock leverage products for Samsung Electronics and SK Hynix launched on May 27, declining from 1,172.52 on May 26 to 751.09 on July 22.

Kosdaq's daily average trading volume dropped significantly, from 15.6 trillion Korean won in May to 6.5 trillion won in early July. In contrast, single-stock leverage and inverse products recorded 11.8 trillion won in average daily trading volume from May 27 through July 22, effectively halving Kosdaq's overall market activity as retail investors shifted capital toward the lower-priced leverage instruments.