The effect of "Kinka-byo" targets 1 Level 1 monster in your GY and continues to target it while it is on the field.
Removing the Special Summoned monster from play when "Kinka-byo" is removed from the field does not start a Chain.
When "Kinka-byo" is flipped face-down its effect disappears. If it is flipped face-up and Special Summons another Level 1 monster, when it is removed from the field only the newly Special Summoned Level 1 monster is removed from play. The previously Special Summoned Level 1 monster remains on the field.
If you Special Summon "Arcana Force 0 – The Fool" with the effect of "Kinka-byo" and the coin toss for "Arcana Force 0 – The Fool" is heads, the effect of "Kinka-byo" is negated and it is destroyed. "Arcana Force 0 – The Fool" remains on the field.
The following rules apply to all Spirit Monsters:
Spirit is not a monster Type; you cannot declare "Spirit" for the effect of "DNA Surgery".
Spirit Monsters are still Effect Monsters.
A Spirit Monster must be face-up on the field during the End Phase for it to return to the owner's hand. If it was destroyed or removed from play, it will not return to the owner's hand.
A Spirit Monster will return to the owner's hand during the End Phase, even if the opponent played it from their hand (through the effect of "Exchange".)