South Korea is poised to launch its first single-stock leveraged exchange-traded funds (ETFs) this week, linked to major chipmakers Samsung Electronics and SK Hynix. These products aim to deliver double the daily movements of the respective stocks, which are crucial players in the global artificial intelligence market. With over 14 million retail investors in South Korea, demand for these ETFs is expected to be robust. However, experts like Jung In Yun, CEO of Fibonacci Asset Management Global, caution that these ETFs could exacerbate existing volatility in the market, particularly given the recent trend of 5% intraday swings in the Kospi index. The Kospi has surged over 300% since late 2024, largely due to the AI boom and a focus on shareholder returns. The introduction of these leveraged ETFs is seen as a way for regulators to attract back retail investment flows, as Korean investors have shown a strong appetite for high-risk, high-reward products. Year-to-date inflows into a Hong Kong-listed leveraged product tied to Samsung have already surpassed those for similar U.S. tech funds.