South Korea-focused KORU ETF falls 15% amid global chip sell‑off

The Direxion Daily South Korea Bull 3X Shares (ticker KORU), a leveraged ETF that tracks three times the MSCI Korea Index, dropped more than 15% in an overnight session. The plunge followed a sharp sell‑off in semiconductor stocks worldwide, which pushed the South Korean KOSPI down over 10%. Samsung Electronics and SK Hynix, together accounting for more than half of the index, led the decline.

Analysts linked the rout to reports that Chinese state‑backed firms are developing advanced semiconductor lithography machines, heightening competition in the AI chip market. "Samsung and SK Hynix provide the first liquid market reaction to overnight developments affecting global AI demand," said Jung In Yun, founder of Fibonacci Asset Management. U.S. chip makers also fell sharply, adding to market pressure.

The combined effect of the chip sector weakness and concerns over AI‑related spending drove the steep decline in the KORU leveraged fund.