On June 25, Direxion Daily South Korea Bull 3X Shares (KORU) rose 17.16% in pre-market trading, trading at approximately $865.08/share, with turnover of $13.56 million. The surge was driven by a strong rebound in the Korean KOSPI index, which climbed over 6% intraday to reclaim the 9000-point level.
The rebound follows a dramatic selloff on June 23, when KOSPI plunged nearly 10% in a single session and triggered circuit breakers. That crash was sparked by Korean Financial Supervisory Service announcing regulatory actions against single-stock leveraged ETFs tracking Samsung Electronics and SK Hynix, combined with massive profit-taking after the index had nearly doubled year-to-date. Samsung Electronics and SK Hynix each fell over 12% that day, their worst single-day declines since 2008. Goldman Sachs noted that leveraged ETF rebalancing needs likely amplified the selloff, with approximately $6 billion in mechanical selling pressure hitting the market.
As a triple-leveraged product, KORU magnifies daily index movements by a factor of three, meaning the KOSPI recovery directly translated into the outsized pre-market gain. The fund invests at least 80% of its net assets in financial instruments providing daily leveraged exposure to the MSCI Korea 25/50 Index, covering approximately 85% of the free float-adjusted market capitalization of South Korean issuers.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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