Korean degens have gone nuts for leveraged ETFs

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Forget Mrs Watanabe and her carry trades in Turkey, Indonesia or Brazil; it turns out that South Koreans are the true trading degens of Asia.

MainFT’s Song Jung-a has written a fascinating piece on how South Korean retail investors’ love of leverage and volatility are now even freaking out local financial regulators.

South Korea’s financial regulators have vowed to curb short-term speculation by retail investors, as their bets on tech stocks fuel fears of a market bubble.

Retail investors have made big bets on themes including electric vehicle battery materials, quantum computers and superconductors, making the tech-heavy Kosdaq one of the world’s best performers this year.

“Their investment patterns are highly risky so we are cracking down on leveraged buying and margin call risks,” said Lee Bok-hyun, governor of the Financial Supervisory Service….

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