South Korea tightens grip on high-risk ETFs as investor losses mount

South Korea's financial authorities are considering stricter regulations on high-risk leveraged exchange-traded funds (ETFs). This move aims to stabilize the country's volatile stock market, which has resulted in significant investor losses and debt. Proposed measures include granting regulators the authority to lower the leverage ratio for single-stock ETFs and increasing the minimum investment threshold. These changes are intended to deter inexperienced retail investors from engaging in overly risky investments. Single-stock leveraged ETFs offer amplified exposure to a company's stock price, typically aiming for double the daily return without direct stock ownership.