What new investment products are being approved in South Korea?

South Korean regulators are approving high-risk single-stock exchange-traded funds (ETFs).

What is the purpose of approving these new leveraged ETFs?

The approval aims to draw retail investors back to domestic equities and diversify the Korea Exchange's product offerings.

What is the leverage limit for the new single-stock ETFs in South Korea?

The leverage for these new products will be capped at twice the movement of the underlying stock.

Home / Business and Economy / South Korea Boosts ETF Options

South Korea Boosts ETF Options

28 Jan

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Summary

Regulators approve high-risk single-stock leveraged ETFs.
Leverage capped at twice stock's movement.
Move aims to draw retail investors back to domestic equities.

South Korean financial regulators are fast-tracking the approval of high-risk single-stock exchange-traded funds (ETFs) to meet surging local demand and re-engage retail investors. The Financial Services Commission announced plans to permit these leveraged products, which allow for bets up to twice the movement of an underlying stock.

This initiative aims to draw retail investors back to domestic equities, as many have shifted their focus to US stocks. The Korea Exchange is working to align its product offerings more closely with leading international markets, which already feature similar high-risk ETF products.

The nation's stock market has seen significant growth, with the Kospi Index advancing 23% in 2026. This rally has boosted the market's valuation to approximately $3.25 trillion, positioning it as the world's 10th-largest stock market.