A 24-year-old South Korean university student, Lee Seung-ho, turned 20 million won into 300 million won using five times leverage before losing the gains in four weeks. He said, "I can hardly breathe."
According to Odaily, many young South Koreans are drawn to leverage because they struggle to build wealth through traditional means, while a typical worker would need 14 years of full wages to buy a house in Seoul. Last Thursday, the South Korean government announced a ban on newly launched leveraged exchange-traded funds tied to individual stocks.
For retail investors holding these products, the risks are uneven, as leverage can magnify losses faster than gains in volatile markets. Lee said he understands the risks but still believes leverage is the best way forward.
South Korea Bans New Leveraged Single-Stock ETFs After Student Loses Gains
2026-07-20 07:39:49
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