On July 28, Direxion Daily MSCI South Korea Bull 3x Shares fell 16.1% in regular trading, trading at $14.2/share, with turnover of $245 million. The ETF extended its pre-market decline as selling pressure intensified throughout the session.

On the news front, despite NVIDIA and SK Group announcing a $500 billion AI infrastructure partnership and Korean enterprises reaching $950 billion in total semiconductor cooperation deals with global tech giants, the positive catalysts failed to support Korean equities, displaying a classic sell-the-news pattern. The Korean KOSPI index plunged 10.84% on the day — its largest single-day drop since March 4 — closing at 6,023.66 points with a nearly 30% cumulative monthly decline. SK Hynix fell over 14% and Samsung Electronics dropped more than 13%.

JPMorgan noted that Korean leveraged ETF unwinding has completed approximately 75%, with residual liquidation pressure still in play. The triple-leverage structure further amplifies downside volatility. Korean financial regulators are considering introducing a personal 20% investment cap on single-stock leveraged products to curb speculative overheating.

The fund invests at least 80% of its net assets in financial instruments providing daily leveraged exposure to the MSCI Korea Index, which covers approximately 85% of the free float-adjusted market capitalization of South Korean issuers. It is non-diversified.

(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.)