South Korea's Regulatory Actions Trigger Unexpected Small-Cap Stock Rally
South Korea's financial regulators inadvertently caused a 30% rally in small-cap stocks on the Kosdaq index. This occurred after they imposed stricter cash deposit requirements on leveraged ETFs tied to major companies like Samsung Electronics and SK Hynix. Retail investors, seeking high-volatility trades, shifted their focus to small-cap stocks, causing a significant surge. The Kosdaq index rose 6.8% in a single day, triggering a trading halt. This shift highlights the speculative nature of retail investors in South Korea, who have previously driven similar market trends. 
