On July 1, iShares MSCI Korea ETF (EWY) fell 5.84% in regular trading, trading at 190.59 USD/share, with turnover of approximately $850 million.

On the news front, the Korean KOSPI index triggered circuit breakers twice within one week, plunging over 8% intraday. Samsung Electronics closed down 5.8% while SK Hynix weakened in tandem. Meanwhile, the Korean Financial Supervisory Service announced it is formulating specialized tightening measures targeting credit trading and margin trading for single-stock leveraged ETFs, citing overheated speculation. The regulatory uncertainty further intensified selling pressure across the market.

Adding to the headwinds, foreign investors recorded a historic net outflow of 148 trillion won from Korean equities in the first half, driven by portfolio rebalancing constraints and currency pressures. Retail investors absorbed roughly 100 trillion won in leveraged positions, creating what Goldman Sachs described as a self-reinforcing feedback loop that has pushed global funding chains near their limits.

EWY tracks the MSCI Korea 25/50 Index, investing at least 80% of assets in component securities designed to measure large- and mid-cap Korean equity performance. The fund is non-diversified.

(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.)