South Korean investors who placed speculative bets on leveraged products linked to Tesla have suffered significant losses as Tesla's stock value has plummeted. Retail investors in South Korea, known for their bold approach to high-risk trading, had invested in exchange-traded products (ETPs) designed to amplify Tesla's gains. However, these leveraged ETPs have seen losses of over 80% since December, while Tesla's stock has only dropped by 41% in the same period. South Korean investors have also suffered losses on other high-risk assets such as Bitcoin and Chinese market-linked structured notes. The losses have highlighted the appetite for high-risk trading among Korean investors. As a result, one of South Korea's largest brokerages has suspended orders for risky leveraged ETPs. Despite the downturn, experts believe that the demand for leveraging Tesla-specific products remains strong among Korean investors. However, leveraged ETFs across the board have also struggled, with significant losses seen in funds tied to Tesla and other stocks. With increased competition, patchy demand, and macroeconomic pressures, South Korean investors may need to reassess their approach to highly leveraged trading. Regulatory scrutiny and preventative measures taken by brokers may influence investors to seek safer and more conservative investments in the future.



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