Leveraged exchange-traded funds (ETFs) tracking major South Korean "memory chip giants" are showing significant strength this morning. As of the latest update, the CSOP 2x Long SK Hynix ETF (07709) has surged 15.43% to HK$75.26, while the CSOP 2x Long Samsung Electronics ETF (07747) has risen 7.82% to HK$102.75.

The catalyst for this movement is a sharp rally in the South Korean stock market, which opened higher and rose sharply enough to trigger a market circuit breaker. The two major memory chip stocks soared, with SK Hynix shares surging over 10% and Samsung Electronics shares climbing more than 7%.

This follows the release of weaker-than-expected US inflation data for June last night, which led traders to scale back bets on a Federal Reserve interest rate hike this month.

In a related development, it has been reported that South Korea's high-level economic policy coordination body, comprising four key ministries, is scheduled to hold a meeting on Thursday. The agenda will include studying countermeasures against potential market volatility caused by single-stock leveraged ETFs, marking the first official discussion of this issue at this level.

Notably, SK Hynix American Depositary Receipts (ADRs) surged over 27% overnight, ending the session at a 51% premium to its shares listed in South Korea.

Barclays recently initiated coverage on SK Hynix with an "overweight" rating and a price target of $330, implying approximately 100% upside potential from Tuesday's closing price.

Additionally, reports indicate that SK Hynix has commenced mass production and delivery of its 12-layer HBM4 memory to NVIDIA, with the product now entering the production ramp-up phase.