On July 13, Direxion Daily South Korea Bull 3X ETF declined 8.26% overnight, trading at 519.79 USD/share, with turnover of approximately $39.82 million.

The selloff was driven by the Bank of Korea's increasingly hawkish stance ahead of its July 16 monetary policy meeting, where a 25-basis-point rate hike from 2.50% to 2.75% is widely expected — the first increase since August 2021. Governor Shin Hyun-song explicitly stated that raising rates is necessary given inflation pressures above target, improving economic growth, and rising financial stability risks. Moody's Analytics confirmed expectations for the hike, citing persistent inflation, a weak won, surging household debt, and rising Seoul housing prices.

Compounding the pressure, Samsung Electronics and SK Hynix plus their leveraged ETFs now account for over 73% of Korean market trading volume. This extreme concentration, combined with daily mechanical rebalancing of leveraged products, amplifies downside moves. KOSPI has fallen 20% from its June peak into a technical bear market, triggering six circuit breakers this year alone. Sustained foreign capital outflows further weigh on the Korean won and risk appetite.

(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.)