On June 5, Direxion Daily South Korea Bull 3X ETF (KORU) fell 16.64% in pre-market trading, trading at $868.0/share, with trading volume of $17.27 million.
The decline was driven by a sharp selloff in the Korean stock market, where the KOSPI index plunged as much as 6.4% intraday, triggering the exchange's Sidecar mechanism to halt programmatic trading. Samsung Electronics dropped over 7% to the 330,000 won range, while SK Hynix tumbled more than 9%, retreating to the 2.1 million won range.
The crash followed a period in which the KOSPI had surged over 100% year-to-date, with nearly three-quarters of the gains concentrated in just two chipmakers — Samsung Electronics and SK Hynix — which together account for 54% of the index's weighting. Foreign investors have now sold Korean equities for 20 consecutive trading days, pushing the Korean won to its weakest level since 2009. Korea's finance minister publicly warned of leveraged speculation risks, with margin balances surging to a record 38 trillion won. Analysts noted the market is likely entering a period of elevated volatility and consolidation over the coming one to two months.
The fund invests at least 80% of its net assets in financial instruments providing daily 3x leveraged exposure to the MSCI Korea 25/50 Index, which covers 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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