Seoul, July 29 -- Single-stock leveraged exchange-traded funds (ETFs) linked to Samsung Electronics and SK hynix have come under scrutiny for amplifying volatility in South Korea's stock market after the reversal of the artificial intelligence (AI)-driven chip rally, according to a news report by The Korea Herald.

The report said the ETFs, which seek to deliver twice the daily return of either Samsung Electronics or SK hynix, have intensified market swings as fund managers are required to rebalance their holdings at the end of each trading session, reinforcing both upward and downward price movements.

According to news report, the products were introduced in May and quickly attracted strong investor interest, recording more than 10 tril...