On July 13, Direxion Daily South Korea Bull 3X Shares (KORU) fell 22.26% in regular trading, trading at approximately $438.68/share, with turnover of $278 million.

The sharp decline was triggered by a massive selloff in the Korean KOSPI index, which plunged 8.95% and triggered its seventh circuit breaker this year, breaching the 7,000-point level. The immediate catalyst was Korean brokerage KIS issuing an SK Hynix Q2 earnings forecast projecting operating profit of 60.4 trillion KRW — approximately 8% below the market consensus of 65 trillion KRW. SK Hynix crashed 15.4%, its largest single-day drop on record, while Samsung Electronics fell over 9%.

The selloff was severely amplified by leveraged ETF deleveraging mechanics. Cumulative forced liquidations reached 3,442 billion KRW in July, with Goldman Sachs attributing the core driver to mechanical rebalancing of single-stock leveraged ETFs rather than fundamental deterioration. Additionally, market expectations of a Bank of Korea rate hike on July 16 — the first since August 2021 — continued to suppress risk appetite. The crash rippled across Asian markets, dragging down indices in China, Japan, and Hong Kong.

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, covering 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.)