# Rotation from leveraged ETFs drives South Korean small caps up 30%

2026-08-10T06:15:20+00:00 | Business & Economy | Indian Opinion Desk

Corroboration: 1 independent outlet

The KOSDAQ index jumped 6.8% on Monday, extending gains since July 30 to over 30%, as restrictions on leveraged ETFs tracking Samsung Electronics and SK Hynix shift money into small-cap stocks. The Korea Exchange briefly halted programme buying for the gauge after futures surged, the third such intervention this month. A rotation from single-stock leveraged ETFs has gathered pace after authorities imposed higher cash deposit requirements. The KOSDAQ is on track to outperform the benchmark KOSPI by more than 20 percentage points in August. The small-cap gauge surged 11% last week while the KOSPI slipped 5.1%, marking its best relative performance since 2000.

## Coverage

- livemint.com <https://www.livemint.com/market/rotation-from-leveraged-etfs-fuel-30-jump-in-korea-small-caps-11786333692633.html>
- livemint.com <https://www.livemint.com/money/personal-finance/sensex-vs-kospi-does-india-s-sector-diversity-offer-an-edge-over-south-korea-s-chip-heavy-index-11786509592447.html>

Tags: chipmakers, Kosdaq, leveraged ETFs, regulatory curbs, small caps, South Korea
Canonical: https://indianopinion.org/south-korea-small-caps-surge-30-as-chip-etfs-face-curbs/
License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources.
Cite: https://indianopinion.org/south-korea-small-caps-surge-30-as-chip-etfs-face-curbs/#story-in-brief

Review state: restored archive article, accurate at time of publication, not offered to search indexes.