"Chasing 2X Gains on Samsung and SK Hynix"... 'Bull Ants' Take 10 Billion Won to Hong Kong

100 Billion Won in Net Purchases of 2x Leveraged ETFs in Just Three Trading Days
Investors Turn to Overseas Markets for Leveraged Products Unavailable Domestically

As Samsung Electronics and SK Hynix continue to set new record highs day after day, domestic investors are turning their attention to the Hong Kong stock market. In just three trading days, investors have purchased more than 10 billion won worth of 2x leveraged exchange-traded funds (ETFs) that are not available in Korea, aiming to maximize their returns through so-called "overseas investing."

On the 7th, as the KOSPI index surpassed 4600, the stock prices of Samsung Electronics and SK Hynix hit record highs for consecutive days. The current status of the domestic stock market and the stock prices of Samsung Electronics and SK Hynix are displayed at the Korea Exchange in Yeouido, Seoul.

According to data from the Korea Securities Depository’s SEIBro portal on January 9, as of January 7, domestic investors made a net purchase of a total of 7,037,428 US dollars (approximately 10.2 billion won) in 2x leveraged ETFs for Samsung Electronics and SK Hynix listed in Hong Kong. Specifically, 4.58 million dollars were invested in the "CSOP Samsung Electronics Daily 2X Leveraged" ETF, and 2.45 million dollars in the "CSOP SK Hynix Daily 2X Leveraged" ETF. Considering the T+2 settlement period, this means that over 10 billion won was invested in just three trading days.

These ETFs ranked fourth and eighth in net purchases on the Hong Kong stock market. Each product is designed to track twice the daily return of Samsung Electronics and SK Hynix, respectively. Since there are no equivalent products in the Korean market, this has encouraged investors to look overseas.

This wave of investment is closely linked to recent trends in the semiconductor industry. The proliferation of artificial intelligence has led to a surge in demand for high-bandwidth memory (HBM), resulting in a deepening supply shortage and driving the stock prices of both companies to new heights. Samsung Electronics climbed to 144,500 won, and SK Hynix reached 788,000 won, both setting all-time highs. Since the beginning of this year, their stock prices have risen by 15.76% and 16.13%, respectively, and leveraged ETF investors are estimated to have already achieved returns exceeding 30%.

Strong earnings forecasts are also supporting investor sentiment. Samsung Electronics recorded an operating profit of 20 trillion won in the fourth quarter of last year, becoming the first Korean company to achieve the highest-ever quarterly profit. With the increase in general DRAM prices and the inclusion of HBM performance, annual operating profit for this year is expected to exceed 100 trillion won. Macquarie raised its target price for Samsung Electronics by 37% to 240,000 won, and for SK Hynix by 40% to 1,120,000 won, maintaining a bullish outlook.

On January 9, the KOSPI climbed into the 4,580 range, again setting a new all-time high. That day, the KOSPI closed at 4,586.32, up 33.95 points (0.75%) from the previous session, marking a record high for the sixth consecutive trading day.

Securities firms believe that structural profit growth in the semiconductor sector, led by Samsung Electronics and SK Hynix, will drive the KOSPI this year. Hana Securities forecasts that in 2026, net profit growth for Samsung Electronics and SK Hynix will reach 114% and 75%, respectively, and estimates that the semiconductor sector will account for 47% of total net profits in the KOSPI. Samsung Electronics is expected to account for 26% and SK Hynix for 21%, leading the index’s rise.

The securities industry stated, "The current memory shortage is unlikely to improve until 2028," and advised, "Investors need a strategy that avoids selling too early." However, they emphasized that due to the inherent volatility of leveraged ETFs, investors should be mindful of the possibility of short-term corrections.