Korea Market Update

The KOSPI index fell 10.5% on June 23, 2026, driven by regulatory scrutiny of levered ETFs, pension fund rebalancing, and significant local institutional outflows.

Key Takeaways

• 1.KOSPI and major Korean equities faced significant sharp declines, with KOSPI down 10.5% due to regulatory concerns over levered ETFs and local selling pressure.
• 2.Korean regulators are evaluating stabilization measures for onshore levered ETFs, which have reached $9.1bn in AUM, predominantly held by retail investors.
• 3.Pension funds are driving net selling to rebalance portfolios as market performance pushed domestic equity exposure above maximum caps.

Table of Contents

• Levered ETF
• Taxing Unrealized Gains
• Pension Continues To Sell
• Flow
• Technical Factors
• More Resources
• FYI: Circuit Breaker Rules

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