South Korea's Kospi drops 12.6% after single-stock leveraged ETFs launch

South Korea’s Kospi stock index just took a big 12.6% hit on Wednesday, and top officials are saying sorry for the hasty introduction and regulatory oversight of single-stock leveraged ETFs.

The drop mostly comes from sharp losses in major chip stocks, made worse by the launch of new single-stock leveraged ETFs, financial products that Finance Minister Koo Yun-cheol admitted weren’t fully thought through.