Leverage in Korean chip stocks is flashing risk

Leverage in South Korean chip stocks is getting extreme.
Single-stock leveraged and inverse ETFs tied to SK Hynix now reportedly hold around $19B in assets.
That is more than 4x the stock’s average daily trading volume this year.
Samsung is showing the same pattern, with about $12.4B in leveraged ETF assets, far above its average daily turnover.
The most extreme case is the Hong Kong-listed 2x long SK Hynix ETF, which is reportedly worth around twice the value of SK Hynix shares traded on an average day.
For comparison, $MU has leveraged ETF assets well below its normal daily trading volume.
Even $TSLA and $NVDA have leveraged ETF assets that are much smaller relative to their daily liquidity.
Korean chip stocks are becoming a concentrated leverage trade.
That can amplify upside, but it can also make reversals much faster when positioning breaks.