South Korea’s top financial regulator is preparing to announce new measures targeting single-stock leveraged exchange-traded funds, the head of the Financial Services Commission (FSS) said on Thursday.
The regulator intends to closely inspect and revise the framework governing these products, which have seen a surge in popularity among retail investors.
The move marks a significant escalation in Seoul’s efforts to curb speculative excesses in the equity market.
Single-stock leveraged ETFs have increasingly dominated local trading volumes, raising concerns among policymakers about market stability and investor protection.
The FSS has previously signaled its intent to dampen the surge, but the upcoming announcement is expected to outline concrete regulatory steps.
This development follows earlier indications from the finance ministry that it was considering new measures to address the risks associated with these instruments.