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Exchange-traded funds (ETFs) tied to Samsung Electronics rallied sharply after the company’s labor union and management reached a tentative wage agreement, easing strike risks. Anticipation surrounding single-stock leveraged ETFs on Samsung Electronics (005930.KS) and SK hynix (000660.KS), set to launch later this month, further fueled investor sentiment toward semiconductor stocks.
According to the Korea Exchange on Wednesday, the TIGER 200IT Leverage ETF surged 20.62%, ranking first in daily returns among all ETFs listed in Korea. Given that the KOSPI gained around 7% at the same time, the ETF’s performance significantly outpaced the broader market. The product concentrates investments in major semiconductor and information technology (IT) names, including Samsung Electronics, SK hynix, and SK Square.
Other semiconductor-themed ETFs also posted steep gains, including TIGER Semiconductor TOP10 Leverage (17.36%), KODEX Semiconductor Leverage (16.85%), and HANARO Semiconductor Core Process Leaders (9.75%).
The tailwind from Samsung Electronics extended across Samsung Group ETFs as well. TIGER Samsung Group (7.52%), KODEX Samsung Group (7.31%), and KODEX Samsung Group Value (7.43%) all rose more than 7%. Each of these products holds Samsung Electronics at a weighting of more than 30%, with substantial allocations to other major electronics affiliates such as Samsung Electro-Mechanics.
The previous night, Samsung Electronics’ labor and management signed a tentative wage agreement at the Suwon office of the Ministry of Employment and Labor in Gyeonggi Province. The two sides agreed on payments including the Overall Performance Incentive (OPI) and a special bonus for the Device Solutions (DS) semiconductor division, leading the union to suspend its planned strike.
Market participants view the easing of labor tensions, combined with optimism over the semiconductor cycle, as having stimulated investor sentiment. Samsung Electronics broke above the 290,000 won level during intraday trading, approaching the 300,000 won mark, while SK hynix climbed more than 10% to retake the 1.9 million won level.
Interest is also rapidly building around single-stock leveraged and inverse ETFs on Samsung Electronics and SK hynix, which are scheduled to launch on the 27th of this month. The securities industry is preparing to roll out a total of 16 products using the two stocks as underlying assets. According to the Korea Financial Investment Association, as of the previous day, more than 90,000 investors had applied for the mandatory pre-trading education required for single-stock leveraged and inverse ETFs.
“With the recent rally in semiconductor stocks, significant capital inflows are expected following the launch of single-stock leveraged ETFs,” said Ha Jae-seok, an analyst at NH Investment & Securities. “There is also a possibility of additional demand from existing semiconductor ETF investors switching into the new products.”
