South Korea's "Father of ETFs": Leveraged Products Should Not Be Forcibly Delisted, But Investors Better Not Touch Them

TechFlow reports, on July 30, Bae Jae-kyu, CEO of Korea Investment Management Company, known as the "Father of ETFs" in South Korea, stated on Thursday that single-stock leveraged products tracking Samsung Electronics and SK Hynix should be allowed to gradually exit the market naturally, rather than being forcibly delisted.

Bae Jae-kyu stated that for such products, the best choice for investors is "do not invest." He warned that during periods of high market volatility, daily rebalancing and the compounding effect could rapidly erode product value. He added that investors often attempt to buy the dip for a rebound after a sharp market decline, but relying on this strategy makes it difficult to achieve sustainable wealth growth. He also advised investors not to concentrate funds on a single memory chip manufacturer, but instead invest across the entire semiconductor industry chain.

Bae Jae-kyu stated: "The memory chip industry still has obvious cyclicality." He pointed out that Samsung Electronics, SK Hynix, and Micron Technology continue to expand investment, while regional competition is also intensifying. He believes that the semiconductor boom driven by artificial intelligence has made market performance exceed expectations, but advised investors to focus on the industry's long-term growth prospects rather than short-term price fluctuations. (Jin10)