South Korea’s financial regulator plans to relax rules on single-stock leveraged ETFs to attract more retail investors, according to Financial Services Commission (FSC) chair Lee Eog-weon.

Lee said these ETFs will be permitted to provide up to twice the daily performance of the underlying stock.

The move aims to make the local financial market more appealing amid recent market sluggishness, which led to decreased retail participation.

The Korean stock market has seen renewed interest following a 90% rise in the KOSPI index over the past year, driven by gains in the AI and chip sectors, including Samsung Electronics.

Authorities expect these changes could encourage retail investor activity and help stabilize the Korean won against the US dollar.

🔗 Source: Yonhap