[The Bank of Korea Issues Warning on Derivatives Linked to Korean Chipmakers] Jin10 News, September 10 – The Bank of Korea has called for enhanced monitoring of overseas derivatives linked to Korean chipmakers, warning that their rapid growth could amplify domestic market volatility. The central bank pointed out that leveraged bets by situational awareness hedge funds are a recent example. In its semi-annual monetary policy report submitted to the National Assembly on Thursday, the Bank of Korea stated that the concentration of the Korean market in semiconductor stocks, portfolio rebalancing by foreign investors, and the accumulation and unwinding of domestic leverage were the driving factors behind the unprecedented fluctuations in the KOSPI index from January to July. The Bank of Korea noted that global banks and ETF managers, when hedging total return swaps, traded Korean spot stocks, futures, and options, which evidently amplified domestic stock price volatility. Although the Bank of Korea did not cite specific cases, an unusual transaction involving SK Hynix in July triggered nearly $60 million in liquidations in the offshore cryptocurrency market, highlighting the growing cross-market risks posed by leveraged products linked to Korean chipmakers.