KOSPI Slumps on Forced Leverage ETF Deleveraging, Key Support at 6,800

According to Goldman Sachs, today July 14, the KOSPI's sharp decline was amplified by mechanical selling from forced deleveraging of single-stock leverage ETFs. The investment bank noted that 2x leverage ETFs tracking semiconductor stocks like Samsung Electronics and SK Hynix fell over 30% in a single day, forcing asset managers to sell underlying holdings to maintain target leverage ratios, creating a vicious cycle of selling pressure.

Domestic institutions net sold $1.5 billion and foreign investors net sold $1.13 billion on the exchange today, with Goldman Sachs estimating 62% of domestic institutional selling came from ETF liquidation. The bank identified 6,800 as the key technical support level; if breached, the next support stands at 6,500, followed by 6,100–6,000.