South Korea's KOSDAQ market experienced a severe trading volume contraction between May 27 and July 24, with daily trading plummeting from 15.2784 trillion won to 5.177 trillion won, a 66.1% decline over less than two months. The collapse coincided with massive concentration in Samsung Electronics and SK Hynix-related products, where 14 single-stock leveraged ETFs recorded 392.1284 trillion won in cumulative trading during the same 41-trading-day period, exceeding the entire KOSDAQ market's 359.4237 trillion won total. According to Korea Exchange data analyzed by Financial News, the two semiconductor giants' underlying stocks accounted for 51.5% of all KOSPI trading volume, while KOSDAQ credit financing balance dropped 29.9% compared to KOSPI's 3.7% decline, indicating disproportionate capital flight from the smaller market.
KOSDAQ Trading Volume Drops 66.1% in Two Months
Korea Exchange data showed KOSDAQ market trading volume on May 27 reached 15.2784 trillion won, falling to 5.177 trillion won by July 24, a reduction of 10.1014 trillion won. The five-day average trading volume declined 59.9% from 12.7416 trillion won in the first five trading days after single-stock leveraged ETF listings to 5.1042 trillion won in the most recent five trading days. During the same period, the KOSDAQ index fell 34.0% from 1133.13 to 748.22. An industry source stated that "market trading vitality contracted rapidly at a pace difficult to explain solely by lower price levels."
Samsung and SK Hynix Leveraged ETFs Record 392 Trillion Won Trading
Financial News analysis of Korea Exchange data revealed that 14 single-stock leveraged ETFs tracking Samsung Electronics and SK Hynix accumulated 392.1284 trillion won in trading volume across 41 trading days from May 27 to July 24. This total exceeded the entire KOSDAQ market's 359.4237 trillion won by 32.7047 trillion won (9.1%). Daily averages showed the 14 leveraged ETF products traded 9.5641 trillion won compared to 8.7664 trillion won for all approximately 1,800 KOSDAQ-listed stocks combined. On July 24, the 14 leveraged ETFs alone recorded 9.6 trillion won in trading while the entire KOSDAQ market traded 8.8 trillion won.
Two Stocks Capture 51.5% of KOSPI Total Volume
Samsung Electronics recorded 398.7849 trillion won in trading volume from May 27 to July 24, while SK Hynix posted 560.4831 trillion won, totaling 959.2680 trillion won. This combined figure represented 51.5% of KOSPI's entire 1861.4813 trillion won trading volume during the period. The simple sum of underlying stock and leveraged ETF trading for both companies reached 1351.3965 trillion won over two months. An industry official commented that "when overall market liquidity decreases and trading concentrates in Samsung Electronics, SK Hynix and related products, KOSDAQ inevitably suffers the first impact."
KOSDAQ Credit Financing Declines Eight Times Faster Than KOSPI
KOSDAQ credit financing balance decreased from 9.8563 trillion won on May 27 to 6.9106 trillion won on July 23, a 29.9% reduction. During the same period, KOSPI credit financing fell from 26.8337 trillion won to 25.8386 trillion won, a 3.7% decline. The KOSDAQ credit financing decline rate was approximately eight times that of KOSPI. The industry source added that "we must be vigilant about the possibility of declining trading leading to investor exodus in a vicious cycle."
FAQ
What happened to KOSDAQ trading volume between May 27 and July 24?
KOSDAQ daily trading volume fell from 15.2784 trillion won on May 27 to 5.177 trillion won on July 24, a 66.1% decline over less than two months. The five-day average trading volume decreased 59.9% during this period, while the KOSDAQ index dropped 34.0% from 1133.13 to 748.22.
How much trading did Samsung and SK Hynix leveraged ETFs record?
Fourteen single-stock leveraged ETFs tracking Samsung Electronics and SK Hynix accumulated 392.1284 trillion won in trading volume across 41 trading days from May 27 to July 24, exceeding the entire KOSDAQ market's 359.4237 trillion won total by 32.7047 trillion won (9.1%).
What percentage of KOSPI trading did Samsung Electronics and SK Hynix represent?
Samsung Electronics and SK Hynix combined for 959.2680 trillion won in trading volume from May 27 to July 24, accounting for 51.5% of KOSPI's total 1861.4813 trillion won trading volume during the period.
