The South Korean exchange is considering launching riskier ETFs to attract individual investors.

South Korea's main stock exchange is currently in discussions with financial regulatory authorities to consider lifting the ban on high-risk leveraged trading products. Despite a historic surge in the domestic stock market, it has not been able to attract retail funds back to the domestic market. According to the CEO of the South Korean Exchange, the exchange is studying the gradual relaxation of relevant restrictions, which currently prohibit high-risk products such as single stock leveraged ETFs and funds with three times or more leverage exposure to indices. This move highlights the dilemma facing South Korea: despite a 92% surge in the benchmark Kospi index over the past year, investors continue to favor the US market. Regulatory authorities point out that one of the reasons for the weakening of the domestic currency is the large amount of retail funds flowing to the US stock market.