South Korean retail investors:# 76% rise in the Kospi in 2025 and a further jump to over 9,300 points in June triggered a wave of speculative single‑stock leveraged ETFs in SK Hynix and Samsung Electronics. Those products, launched late May, allowed investors to magnify bets on the AI‑driven chipmakers, bringing a net Won100tn ($70bn) in inflows. After a sharp 22% fall in July, the Finance Ministry tightened rules: new entrants must complete a week‑long simulated‑trading course and meet a higher minimum deposit of Won30mn.

Regulators also raised mandatory education to three hours. Albert Yong of Petra Capital warned that many investors did not grasp how volatility could erode leveraged returns. Some, dubbed “gaemi” or ants, questioned whether education would curb losses, but data show turnover fell from Won12.4tn to Won700bn, and investors redeemed Won1.4tn between Aug 4‑10, signalling a pullback.

Kim Hyung‑kyoon of Tcha Partners noted the market is normalising, though confidence remains fragile. The crackdown appears to dampen speculative fervour while the AI rally’s fundamentals endure.