South Korea’s finance ministry is considering new measures to address risks associated with single-stock leveraged exchange-traded funds (ETFs), according to Finance Minister Koo Yun-cheol.
The minister stated on Tuesday that the government is actively reviewing complementary policies to mitigate problems arising from these newly introduced financial instruments, which have seen rapid adoption among retail investors.
The move comes as South Korea’s Financial Services Commission (FSS) has already begun taking steps to dampen the surge in single-stock ETF trading.
Regulators are focused on curbing speculative excesses that have come to dominate local trading volumes, raising concerns about market stability and investor protection.
The introduction of leveraged variants has intensified these pressures, prompting a broader policy response.
This development marks an escalation in regulatory scrutiny of retail trading behaviors in Seoul.